Which of the Following Does Not Generate Pressure to Decrease

question 127

Multiple Choice

Which of the following does not generate pressure to decrease inventories?

• A) taxes and insurance
• B) inventory holding costs
• C) storage and handling costs
• D) ordering costs

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Definitions:

Bad Debt Expense

The cost associated with accounts receivable that a company does not expect to collect because customers default on their payments.

Note Duration

The length of time until a promissory note, or loan agreement, is due to be paid in full.

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate, indicating its worth at issuance.

Interest Rate

The percentage charged on the total amount of borrowed money or paid on investments, over a specific period of time.