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 needed for the manufacturing process
IV.producing goods on demand versus for inventory

Question

Quizplus · Accepted Answer

All the actions listed would help decrease the inventory period. Discontinuing slow-selling merchandise, selling obsolete inventory, buying raw materials only as needed, and producing goods on demand 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