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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Definitions:

Motivational

Relating to motivation, which concerns the processes that influence one's willingness to engage in particular behaviors.

Emotional

Relating to a person's feelings and their expression, reflecting a complex psychological state involving physiological arousal, outward behaviors, and conscious experience.

Psychoanalytic Approach

A psychological theory and therapy method developed by Freud, focusing on the unconscious mind, childhood experiences, and psychosexual development.

Unconscious Impulses

Desires or drives that reside within the unconscious mind, affecting behavior and thoughts without the individual's aware recognition.