Use the Following to Answer Questions

question 20

Multiple Choice

Use the following to answer questions:
Scenario 12-2. Jeremy's Jewels is a retail store that specializes in medium-quality, medium-priced jewelry. It is located in a mall in downtown Yosako, Kansas. Jeremy is concerned about his inventory costs. He has several questions concerning purchasing, choosing suppliers, and how much inventory he actually needs. Lately, his cash flow has been severely strained due to the fact too much cash is being tied up in inventory. Jeremy is currently the only employee of his small business.
-In Scenario 12-2 above, an important factor for Jeremy in considering his inventory needs is which of the following?

• A) The time period it takes to receive new inventory
• B) The obsolescence of the inventory
• C) Shrinkage
• D) Storage costs