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The following is TRUE about Inventory: A. Firms increase inventory because more inventory means more movement of materials B. Firms increase inventory because there are price discounts or transportation discounts associated with ordering in larger quantities C. Firms increase inventory because there is an opportunity cost to holding inventory D. Firms increase inventory because more inventory sitting for longer periods of time present more opportunities for damage, errors, rework, theft, and obsolescence E. Firms increase inventory because the more we spend on inventory, the more we need to spend on other inventory-related expenditures

Sagot :

Answer:

The answer is "Option C".

Explanation:

Firms could already retain excessive stock in a position to take account of lower pricing provided by suppliers and to fill a full truckload, which lowers shipping costs per unit. Anything else, holding a lot of inventory makes no sense; therefore, firms increase inventory as there is an economic benefit to storage.