A Disadvantage of the Fixed-Period Inventory System Is That

question 119

Multiple Choice

A disadvantage of the fixed-period inventory system is that

• A) it involves higher ordering costs than the fixed quantity inventory system.
• B) additional inventory records are required.
• C) the average inventory level is decreased.
• D) since there is no order of inventory during the review period, a stockout is possible.
• E) orders usually are for larger quantities.

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Definitions:

Unemployment

The condition of being jobless and actively seeking employment, often measured as a percentage of the labor force.

1921

The year notable for several significant global events, including the founding of the Communist Party of China and the Tulsa Race Massacre in the United States.

League of Nations

An international organization established after World War I to promote peace and cooperation among countries, although it ultimately failed to prevent World War II.

World Court

Also known as the International Court of Justice, it is the principal judicial organ of the United Nations, settling legal disputes between states.