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

Discontinuing slow-selling merchandise, selling obsolete inventory, buying raw materials as needed, and producing goods on demand all reduce the time inventory is held, thus decreasing the inventory period.

Which of the Following Actions Will Tend to Decrease the Inventory