Zanda Corp

Multiple Choice

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) Zanda will have higher investment in plant and equipment.
B) Zanda will have higher hiring and firing costs.
C) Zanda will have higher inventory carrying costs.
D) Zanda will have lower total production costs.