Looking for the answer to the question below related to Management?

 A disadvantage of the fixed-period inventory system is that: 

 Options:

A. it involves higher ordering costs than the fixed quantity inventory system.
B. additional inventory records are required.
C. the average inventory level is decreased.
D. since there is no count of inventory during the review period, a stockout is possible.
E. orders usually are for larger quantities.

The Correct Answer Is:

• D. since there is no count of inventory during the review period, a stockout is possible.

Conclusion

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