Which of the Following Is a Disadvantage of Carrying Too

question 21

Multiple Choice

Which of the following is a disadvantage of carrying too much inventory?

• A) it creates an unnecessary waste of scarce resources.
• B) it leads to higher annual inventory ordering costs.
• C) it leads to lower average finished goods inventories.
• D) it increases the need to purchase items.
• E) it reduces the need to conduct cycle counts.