In an Attempt to Keep Inventory Fresh,a Small Retailer Is

question 63

Multiple Choice

In an attempt to keep inventory fresh,a small retailer is trying to minimize amounts kept in inventory.What is a potential weakness of this practice?

• A) an increase in inventory carrying costs
• B) stockouts lead to lost sales
• C) an increase in the expense of using the retail inventory valuation method
• D) an increase in inventory shrinkage through pilferage

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Definitions:

Antarctic

The Earth's southernmost continent, surrounding the South Pole, known for its extreme cold temperatures and ice-covered landscape.

Social Exchange Theory

A sociological and psychological theory that explains social change and stability as a process of negotiated exchanges between parties.

Business Transaction

A financial exchange or activity that occurs between parties in the course of business.

Three-Factor Theory

A psychological theory that categorizes the sources of motivation into three factors: autonomy, competence, and relatedness.