Which of the following does not generate pressure to decrease inventories?
A) taxes and insurance
B) inventory holding costs
C) storage and handling costs
D) ordering costs

Question

Quizplus · Accepted Answer

Ordering costs are associated with the cost of placing orders and receiving goods, not with the costs of holding or maintaining inventory, which are related to taxes, insurance, storage, and handling costs. These holding costs create pressure to decrease inventories to minimize expenses, whereas ordering costs do not directly pressure firms to reduce inventory levels.

Which of the Following Does Not Generate Pressure to Decrease