A Disadvantage of the Fixed-Period Inventory System Is That

question 143

Multiple Choice

A disadvantage of the fixed-period inventory system is that:

• A) it involves higher ordering costs than the fixed quantity inventory system.
• B) additional inventory records are required.
• C) the average inventory level is decreased.
• D) since there is no count of inventory during the review period, a stockout is possible.
• E) orders usually are for larger quantities.

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Definitions:

Field Study

A research method that involves collecting data outside of a laboratory setting, in the natural environment where the subjects of study can be observed in their usual circumstances.

Social Behavior

Actions and interactions among individuals within a group, ranging from cooperation and communication to competition and conflict, influenced by the social context.

Independent Variables

Variables in an experiment that are manipulated to observe their effect on dependent variables, used to establish causal relationships.

Operational Definition

A specific, clear, and measurable definition of a concept or variable for the purposes of scientific study.