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

• A) i
• B) ii
• C) i and iii
• D) i, ii, and iii
• E) ii and iii

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Definitions:

Whey

A by-product of cheese production, rich in proteins and used in various food products and supplements.

Curds

Solid chunks or clumps that form in milk during the coagulation process, often as a precursor to cheese production.

Whey

The liquid remaining after milk has been curdled and strained, often used in food products or as a dietary supplement.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.