Which of the Following Statements About Inventory Is True

question 30

Multiple Choice

Which of the following statements about inventory is true?

• A)Managing an inventory requires balancing between availability and cost.
• B)Inventory size increases as consumers purchase items.
• C)Increasing the inventory size increases a company's profitability.
• D)Inventory management decisions are limited to the size of the inventory.

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Definitions:

Counteroffer

A response to an original offer in a negotiation, where the terms of the first offer are modified.

Binding Contract

An agreement between two or more parties that is legally enforceable in a court of law.

Present Intent

The current intention or determination to engage in a particular action or effect a legal consequence.

Subjective Standard

A legal standard that is based on personal feelings, tastes, or opinions, making it subject to individual judgment rather than objective observation.