Which of the following is a benefit of holding large inventories?
A)Absence of holding costs due to tax exemption
B)Decreased risk of losses due to depreciation
C)Availability of abundant funds
D)Reduced ordering costs

Question

Quizplus · Accepted Answer

Holding large inventories can result in reduced ordering costs, as fewer orders need to be made. However, it is important to note that this benefit needs to be balanced against the potential drawbacks of holding large inventories, such as increased storage and carrying costs. The other options listed in the question (tax exemption, decreased risk of losses due to depreciation, availability of abundant funds) are not typically considered benefits of holding large inventories.

Which of the Following Is a Benefit of Holding Large