An Advantage of the Fixed-Period Inventory System Is That

question 26

Multiple Choice

An advantage of the fixed-period inventory system is that:

• A) safety stock will be lower than it would be under a fixed-quantity inventory system.
• B) there is no physical count of inventory items when an item is withdrawn.
• C) no inventory records are required.
• D) orders usually are for smaller order quantities.
• E) the average inventory level is reduced.

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Definitions:

Federal Level

Pertaining to the national government, as opposed to state, local, or municipal levels, involving decisions, laws, and policies that affect the entire country.

Equilibrium Price

A financial point in the marketplace where goods supplied and goods demanded are identical in quantity.

Price Floor

A price floor is a minimum price set by the government or another body, below which the price of a product cannot fall.

Airline Tickets

Documents issued by an airline or a travel agency to confirm an individual's purchase of a seat on a flight on an aircraft.