Which one of the following would generally reduce the carrying costs of inventory?

Question

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Carrying costs are the expenses that companies incur in managing and storing inventory. The cost of interest on loans and capital investment is a significant component of carrying costs. Therefore, experiencing a decrease in the overall interest rate would generally reduce the carrying costs of inventory. Conversely, increasing the spoilage rate (A) would increase the costs since more inventory would have to be discarded, and carrying more fad-sensitive goods (B) may increase the risk of obsolescence, leading to higher costs. Increasing the need to sell securities (D) has no direct impact on the carrying costs of inventory.

Which One of the Following Would Generally Reduce the Carrying