When is a seller most likely to experience a small-order problem?
A) when variable costs are greater than its fixed costs
B) when revenues from orders are less than allocated expenses
C) when customers are likely to take advantage of quantity discounts
D) when customers prefer to order once a month instead of weekly
E) when customers are not influenced by the just-in-time (JIT) concept

Question

Quizplus · Accepted Answer

A small-order problem occurs when the revenues generated from orders do not cover the allocated expenses, leading to inefficiency and reduced profitability for the seller.

When Is a Seller Most Likely to Experience a Small-Order