Which of the Following Is Not a Reason to Carry

question 76

Multiple Choice

Which of the following is not a reason to carry inventory?

• A) To provide a safeguard for variation in raw material delivery time
• B) To take advantage of economic purchase-order size
• C) To maintain independence of operations
• D) To meet variation in product demand
• E) To keep the stock out of the hands of competitors

---

Definitions:

Share Exchange

A transaction where companies trade shares with each other to form a strategic partnership or complete an acquisition or merger.

ASX

The Australian Securities Exchange, the primary stock exchange in Australia.

Cost of Acquisition

The total expenses incurred when acquiring an asset, including the purchase price and any other costs associated with the acquisition.

Goodwill

An intangible asset that arises when a buyer acquires an existing business and pays more than the fair value of net identifiable assets.