Which of the Following Would Not Generally Be a Motive

question 31

Multiple Choice

Which of the following would not generally be a motive for a firm to hold inventories?

• A) to decouple or separate parts of the production process
• B) to provide a stock of goods that will provide a selection for customers
• C) to take advantage of quantity discounts
• D) to minimize holding costs
• E) All of the above are functions of inventory.

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Definitions:

Postpone Purchases

The act of delaying buying goods or services until a later date, often due to financial considerations, changing needs, or waiting for price reductions.

Prematurely

Occurring or done before the usual or proper time, often implying a negative outcome or risk.