Costs of the ﬁrm that fall with increased levels of investment in its current assets are called _____ costs.
A)carrying
B)shortage
C)debt
D)equity
E)payables

Question

Quizplus · Accepted Answer

Shortage costs decrease as a firm invests more in its current assets, because having more current assets reduces the likelihood of running out of stock or not being able to meet short-term obligations.

Costs of the ﬁRm That Fall with Increased Levels of Investment