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.