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A construction organisation requires specialist equipment for digging deep foundations. Which of the following circumstances would result in the hire of equipment rather than leasing it?

Options:

The subjective assessment of multiple factors for both hire and lease by the directors

The expected frequency of use, the storage available, and the lease cost of the equipment compared to hiring it

The results of a discounted cost analysis using comparative weekly payments for both hire and lease options

The finance available and the potential profits available on the eventual sale of the leased equipment compared to hire costs

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Question 2

Holding inventory is key to ensure that an organisation can maintain production and meet customer demands. Which of the following are classes of inventory? SelectTHREEthat apply.

Options:

Raw material

Machines

Finished products

Sub-assemblies

Scrap components

Forklift trucks

Question 3

Long-term forecasting of demand using a subjective method is based on a...

Options:

Predicted cash flow forecast levels used by the organisation

Method of calculating the price in detail within the supply chain

Qualitative, informal, experience-based, or intuitive method

Quantitative, explicit, statistical, or formal method

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