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Basic Question 6 of 15

A firm that is concerned about the time it takes for inventory to be delivered by suppliers will likely maintain ______.

A. shortage costs
B. carrying costs
C. reorder points
D. safety stocks

User Contributed Comments 2

User Comment
chesschh Hence, carrying costs?
MathLoser Carrying cost: Financing and holding cost. storage, capital costs, obsolescence, insurances and taxes
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

describe issuers' objectives and compare methods for managing working capital and liquidity

CFA® 2025 Level I Curriculum, Volume 2, Module 4.