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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 passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

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

CFA® 2024 Level I Curriculum, Volume 2, Module 4.