Inventory holding costs are an important consideration for the level production strategy.

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Quizplus · Accepted Answer

Inventory holding costs refer to the expenses associated with storing and managing inventory, such as rent, insurance, taxes, and obsolescence. In a level production strategy, where production is maintained at a steady rate over a longer period of time, inventory holding costs can become a significant factor in determining the overall cost of production. Therefore, it's important to keep these costs in mind while implementing the level production strategy.

Inventory Holding Costs Are an Important Consideration for the Level