CFA Practice Question

There are 120 practice questions for this study session.

CFA Practice Question

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
Correct Answer: D

This firm is most likely not willing to suffer shortage costs since it is concerned about delivery time.

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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