Which of the Following Actions Will Tend to Decrease the Inventory

question 105

Multiple Choice

Which of the following actions will tend to decrease the inventory period?
I. discontinuing all slow-selling merchandise
II. selling obsolete inventory below cost just to get rid of it
III. buying raw materials only as they are needed in the manufacturing process
IV. producing goods on demand versus for inventory

• A) I and III only
• B) II and IV only
• C) II, III and IV only
• D) I, II and III only
• E) I, II, III and IV

---

Definitions:

Economic Price

The monetary value assigned to goods and services determined by factors such as supply and demand in the marketplace.

Consumers

Individuals or groups who purchase goods and services for personal use.

Healthcare Spending

The total amount of resources dedicated by a nation or organization to maintain and improve healthcare services.

Price Controls

Government-mandated prices that are generally imposed in the form of maximum or minimum legal prices.