Which of the Following Would Cause Average Inventory Holdings to Decrease,other

question 31

Multiple Choice

Which of the following would cause average inventory holdings to decrease,other things held constant?

• A) Fixed order costs double.
• B) The purchase price of inventory items decreases by 50 percent.
• C) The carrying cost of an item decreases (as a percent of purchase price).
• D) The sales forecast is revised downward by 10 percent.
• E) None of the above (all would cause average inventory to increase).

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Definitions:

Welfare

governmental support aimed at ensuring the basic physical and material well-being of people in need.

Human Behaviour

The array of actions and mannerisms exhibited by humans in conjunction with their environment, influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion, and genetics.

Genetics

The scientific study of heredity and the variation of inherited characteristics among living organisms.

Self-Development

The process of improving oneself through such activities as enhancing employment skills, increasing consciousness, and building wealth.