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:

Pleasure Principle

A theory in psychoanalytic psychology proposing that people seek pleasure and avoid pain in order to satisfy biological and psychological needs.

Negative Evaluation

The process of critically assessing something with unfavorable or disapproving conclusions.

Looking-Glass Self

A sociological concept suggesting that a person's sense of self develops through perceptions of how others view them.

Generalized Self

A concept in sociology referring to an individual's ability to view themselves from the perspective of the general society and act according to societal expectations.