Which of the Following Would Cause Average Inventory Holdings to Decrease

question 10

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) Interest rates fall.

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Definitions:

Pay Ranges

The spectrum of compensation, from minimum to maximum, offered for specific roles or positions within an organization, often based on experience, skills, and market rates.

Broad Banding

A compensation strategy that consolidates numerous pay grades into fewer wide bands, offering flexibility in job roles and pay.

Labour Costs

The total expenses associated with employing labor, including wages, salaries, benefits, and other related costs.

Point Method

A systematic approach used in job evaluation to quantify the value of a job by assigning points based on various factors like skill, effort, and responsibility.