A Disadvantage of the Fixed-Period Inventory System Is That

question 143

Multiple Choice

A disadvantage of the fixed-period inventory system is that:

• A) it involves higher ordering costs than the fixed quantity inventory system.
• B) additional inventory records are required.
• C) the average inventory level is decreased.
• D) since there is no count of inventory during the review period, a stockout is possible.
• E) orders usually are for larger quantities.

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