Which of the Following Would Cause Average Inventory Holdings to Decrease

question 96

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%.
• C) The carrying price of an item decreases as a percentage of purchase price.
• D) The sales forecast is revised downward by 10%.

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Definitions:

Ecosystems Destruction

The degradation or complete elimination of the vital structures and functions of ecosystems, often due to human activities or environmental changes.

Industrialization

An economic system based on using non-animate sources of energy.

Greenhouse Gases

Gases in Earth's atmosphere, such as carbon dioxide, methane, and water vapor, that trap heat and contribute to global warming and climate change.

Environmental Sustainability

The practice of ensuring natural resources are used in a way that maintains their viability and preserves them for future generations.