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:

Process

A series of actions or steps taken in order to achieve a particular end.

Private Owner

An individual or entity that exclusively owns the rights to a property, business, or asset, without governmental sharing or interference.

Prohibited

Forbidden by law, rules, or other forms of authority.

Infringes

The act of violating, breaching, or encroaching upon laws, regulations, contracts, or the rights of others.