Zanda Corp. and Jones Corp. are identical in every way (products produced, costs, demand, etc.) except for one. Zanda uses a level production plan while Jones prefers a chase production plan. Which of the following is most likely to be true?
A)Jones will have higher investment in plant and equipment.
B)Jones will have higher hiring and firing costs.
C)Jones will have lower inventory carrying costs.
D)All of the options are true.

Question

Quizplus · Accepted Answer

Chase plans typically require more equipment investment, resulting in lower inventory carrying costs, and higher hiring/firing costs.