Inventory costs _________________ when higher levels of inventory are needed to improve customer service.
A)decrease
B)stay the same
C)increase
D)cannot be estimated

Question

Quizplus · Accepted Answer

When higher levels of inventory are needed to improve customer service, inventory costs increase. This is because holding more inventory means incurring additional expenses such as storage, insurance, and obsolescence.

Inventory Costs _________________ When Higher Levels of Inventory Are Needed