XYZ Computing Has Been Trying to Reduce Their Inventory Holding

question 66

Multiple Choice

XYZ Computing has been trying to reduce their inventory holding costs. Which of the following practices would not help them achieve this goal?

• A) de-cluttering their warehouse so as to have better inventory accountability
• B) ordering a larger number of the hottest selling computers
• C) using RFID chips to track the movement of inventory
• D) none of the above will help

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Definitions:

Operating Activities

Business activities related directly to the production and delivery of goods and services, which are reflected in a company's income and cash flow from operations.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and repaying debt, as part of a company's cash flow statement.

Organizing Activities

Activities aimed at arranging or structuring resources and operations, often within the context of management and business operations.

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity.