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Nookie1986
1 month ago
9

The following is TRUE about Inventory:________.A. Firms decrease inventory because there is a risk of significant and unpredicta

ble fluctuations in downstream demand B. Firms decrease inventory because there are price discounts or transportation discounts associated with ordering in larger quantities C. Firms decrease inventory because the more we spend on inventory, the more we need to spend on other inventory-related expenditures D. Firms decrease inventory because there is a risk of interruptions in the flow of components/materials from upstream suppliers E. Firms decrease inventory because there is a risk of interruptions due to unreliable productivity and quality.
Business
1 answer:
harina [3.8K]1 month ago
7 0
The accurate answer is option (c). Explanation: According to the posed question, firms or organizations opt to reduce their inventory since higher spending on inventory translates to increased overall costs on other related inventory expenses. The rationale is that maintaining a fully stocked inventory results in rising costs associated with inventory upkeep, which is not advantageous for the business.
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Regarding speculation, risk is defined by the variability of returns. The discrepancy between expected outcomes and actual results is referred to as risk. In this instance, Sandy believes there exists a positive relationship between the likelihood of risk and returns. For instance, if the risk is elevated, the chance of achieving returns rises. Conversely, reduced risk implies lower chances of earning returns.

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