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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Definitions:

Profit-maximizing

The process or strategy of adjusting production and sales in order to achieve the highest possible profit from operations, considering both revenues and costs.

Charges

Fees imposed for services rendered or penalties for not meeting certain conditions.

Profit-maximizing

A strategy aiming to achieve the highest profit possible by adjusting output levels, pricing, or other operational variables.

Produces

The act or process of creating goods and services.