Which of the following costs tend to rise when a firm switches to a flexible financial policy from a restrictive financial policy?
I.restocking costs
II.lower prices to offset limited selection
III.storage costs
IV.current asset opportunity costs

Question

Quizplus · Accepted Answer

When a firm switches to a flexible financial policy, it tends to hold more current assets, leading to increased storage costs and higher opportunity costs of holding these assets.

Which of the Following Costs Tend to Rise When a Firm