Total inventory costs are reduced when the small business manager spends her time and effort controlling items that represent the greatest inventory value.

Question

Quizplus · Accepted Answer

By focusing on controlling the items that represent the greatest inventory value, the small business manager can reduce the cost of holding inventory overall. This is because these high-value items generally have a greater impact on the overall inventory costs, and reducing their holding costs can have a significant impact on the bottom line.

Total Inventory Costs Are Reduced When the Small Business Manager