The following pairs are all benefits of holding inventory except:
A)receive discounts on large-volume purchases
B)keep sufficient levels of raw materials to minimize disruptions in the production process
C)minimize lost sales because of shortage
D)reduce interest payments

Question

Quizplus · Accepted Answer

Holding inventory actually incurs interest payments rather than reducing them, so reducing interest payments cannot be a benefit of holding inventory. A, B, and C are all common benefits of holding inventory.

The Following Pairs Are All Benefits of Holding Inventory Except