Question

"sends an employee to the bank four times per day to make deposits in an interest-bearing account that protects the store's revenues from the effects of inflation. This is an example of the"

Answer 1

Answer:

Shoe Leather Cost

Explanation:

The effort and time spent to eliminate the effect of the inflation is known as Shoe leather cost.

In this scenario, the company is bearing inflation every second and depositing the amount in the bank by sending the employees four times a day with interest rate that is higher than the inflation will help in reducing the cost of the money held in till. So such efforts and time spent to control inflation is Shoe leather cost. Here the costs, time and effort are sending the employee four times a day to deposit money in the bank.