Post Utme Mountain Top University 2023 Commerce Question 33

Practice objective / multiple choice question 33 from the 2023 Post Utme Mountain Top University Commerce examination.

Post Utme Mountain Top University 2023 Commerce Objective / Multiple Choice
Question 33 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2023 • COMMERCE • objective

A company stores its inventory in a warehouse. The company uses a first-in, first-out (FIFO) inventory system. Which of the following is a benefit of using the FIFO system?

Answer Options

A. It is easier to implement than a last-in, first-out (LIFO) system
Correct Answer B. It reduces the risk of inventory obsolescence
C. It increases the risk of inventory damage
D. It is more expensive than a LIFO system
Correct Answer
B
Correct Option:
It reduces the risk of inventory obsolescence

About This Question

This is Post Utme Mountain Top University 2023 Commerce Question 33. It is one of the objective questions from the 2023 Post Utme Mountain Top University Commerce examination.

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