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Which of the Following Is a Motive for Holding Inventories

question 21

Multiple Choice

Which of the following is a motive for holding inventories?
i. Pipeline theory
ii. Present value inventory control
iii. High cost of transportation


Definitions:

Budgeted Balance Sheet

A projection of a company's financial position at a specific future date, based on expected income, expenses, and changes in assets and liabilities.

Sales Budget

A financial plan that estimates future sales, either in units or monetary value, over a specific period, aiding management in decision-making and resource allocation.

Cash Balance

The amount of cash or cash equivalents a company or individual holds, reflecting the liquidity available for use.

Total Receipts

The sum of all money received by a company during a specific period, including sales, refunds, investments, and any other income sources.

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