There is a cost associated with postponement because the production cost using postponement is typically
A)higher than the production cost without it.
B)lower than the production cost without it.
C)very stable.
D)equal to the production cost without it.

Question

Quizplus · Accepted Answer

Postponement involves delaying some production activities until after customer orders have been received. This often requires holding inventory of partially-finished goods which increases inventory and holding costs. As a result, the production cost using postponement is typically higher than the production cost without it.

There Is a Cost Associated with Postponement Because the Production