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

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Definitions:

MEO

Medium Earth Orbit, a region of space around the Earth above low Earth orbit and below geostationary orbit, typically used for satellites, including those for navigation systems like GPS.

Microwave

An electromagnetic wave with a wavelength in the range of 1 millimeter to 1 meter; also refers to a kitchen appliance using microwaves to heat or cook food.

Radio

A technology that uses electromagnetic waves to transmit or receive sound and other types of data over long distances without wires.

Satellite

An artificial body placed in orbit around the earth or another planet in order to collect information or for communication.