Which One of the Following Activities Is Most Apt to Reduce

question 31

Multiple Choice

Which one of the following activities is most apt to reduce the inventory period?

• A)Replacing slow-moving items with faster-selling products
• B)Replacing fresh foods with canned goods
• C)Manufacturing a product for inventory rather than for an order
• D)Increasing the amount of inventory on hand
• E)Decreasing the number of times the inventory turns over per year

---

Definitions:

LIFO

Last In, First Out; an inventory valuation method where the last items placed in inventory are the first ones to be used or sold.

Ending Inventory

The total value of a business’s merchandise, raw materials, and products not yet sold at the end of an accounting period.

FIFO

"First In, First Out," an inventory valuation method where goods first acquired are the first to be sold, used in accounting to calculate the cost of goods sold.

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue.