Which of the following costs tend to rise when a firm switches from a restrictive financial policy to a flexible 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 typically holds more inventory and cash, leading to higher storage costs and increased current-asset opportunity costs due to the capital tied up in these assets.

Which of the Following Costs Tend to Rise When a Firm