Specifying customized parts when standardized parts are available adversely affects material inventory because customized parts are usually more expensive.

Question

Quizplus · Accepted Answer

This is because customized parts require special production processes and may not be produced in bulk, resulting in higher inventory costs. Standardized parts, on the other hand, are produced in large quantities, resulting in lower costs for inventory.

Specifying Customized Parts When Standardized Parts Are Available Adversely Affects