Carrying Excess Cash Is Convenient but Expensive Because Cash Earns

question 138

True/False

Carrying excess cash is convenient but expensive because cash earns little or no return.

---

Definitions:

Product Availability

The extent to which goods or services can be purchased from suppliers by consumers at any given time.

Order Cycles

The complete sequence of processes from when an order is placed until it is received by the customer.

Leftover Inventory

Refers to items that remain unsold at the end of a sales period, often leading to discounted selling or storage.

Season

A period of the year characterized by specific weather conditions, events, or business activities, which can affect demand and supply dynamics in various markets.