Which of the Following Would Cause Average Inventory Holdings to Decrease

question 8

Multiple Choice

Which of the following would cause average inventory holdings to decrease, other things held constant?

• A) Fixed order costs double.
• B) The purchase price of inventory items decreases by 50 percent.
• C) The carrying price of an item decreases (as a percent of purchase price).
• D) The sales forecast is revised downward by 10 percent.
• E) None of the above (all would cause average inventory to increase).

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Definitions:

Doubt

A feeling of uncertainty or lack of conviction.

Will

The mental faculty by which an individual decides or chooses between different courses of action.

Existential Import

The implication that a statement has concerning the existence of the subjects it mentions.

Categorical Syllogism

A categorical syllogism is a type of deductive argument consisting of three categorical propositions that involve a set of three terms, leading to a conclusion based on logical relationships.