Post Utme Rhema University 2019 Commerce Question 8

Practice objective / multiple choice question 8 from the 2019 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2019 Commerce Objective / Multiple Choice
Question 8 POST_UTME_RHEMA_UNIVERSITY • 2019 • COMMERCE • objective

A warehouse is using a first-in-first-out (FIFO) inventory management system. However, the warehouse has a high turnover rate, and the inventory is constantly being replenished. Which of the following is the most likely consequence of using this system?

Answer Options

A. The warehouse will experience a decrease in inventory levels.
Correct Answer B. The warehouse will experience an increase in inventory levels.
C. The warehouse will experience a decrease in inventory turnover.
D. The warehouse will experience an increase in inventory turnover.
Correct Answer
B
Correct Option:
The warehouse will experience an increase in inventory levels.

About This Question

This is Post Utme Rhema University 2019 Commerce Question 8. It is one of the objective questions from the 2019 Post Utme Rhema University Commerce examination.

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