Which of the Following Actions Will Tend to Decrease the Inventory

question 13

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 needed for 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:

Buyers

Individuals or entities that purchase goods or services for personal use or for resale.

Sellers

Individuals or businesses that provide goods or services to consumers in exchange for payment.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund public expenditures.

Corporations' Profits

The financial earnings that remain for a corporation after all expenses, taxes, and costs have been deducted from total revenue.