Which of the following actions will tend to decrease the inventory period? I.Discontinuing all slow-selling merchandise.
II)Selling obsolete inventory below cost just to get rid of it.
III)Buying raw materials only as they are needed in the manufacturing process.
IV)Producing goods on demand versus for inventory.
A)I and III only.
B)II and IV only.
C)II, III and IV only.
D)I, II and III only.
E)I, II, III and IV.

Question

Quizplus · Accepted Answer

The inventory period is the time that goods remain in inventory before being sold. Discontinuing slow-selling merchandise (I), selling obsolete inventory (II), buying raw materials only as needed (III), and producing goods on demand (IV) all contribute to reducing the amount of time items spend in inventory, thereby decreasing the inventory period.

Which of the Following Actions Will Tend to Decrease the Inventory