Which of the Following Is a Disadvantage of Retail Storage

question 39

Multiple Choice

Which of the following is a disadvantage of retail storage with customer pickup?

• A)Returnability is easier than other options given that pickup location can handle returns.
• B)Inventory cost is higher than all other options.
• C)Transportation cost is lower than all other options.
• D)Facilities and handling costs are lower than other options.

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Definitions:

Operating Lease

A lease agreement for the use of an asset without ownership transfer.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for financial reporting.

Specialized Asset

An asset that is uniquely designed for a specific task or purpose, often resulting in limited alternative uses.

Executory Contract

A contract under which both parties to the agreement have unperformed obligations that remain to be fulfilled.