Which of the Following Would NOT Generally Be a Motive

question 206

Multiple Choice

Which of the following would NOT generally be a motive for a firm to hold inventories?

• A) to decouple various parts of the production process
• B) to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand
• C) to take advantage of quantity discounts
• D) to minimize holding costs
• E) to hedge against inflation

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