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) 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.