Which of the Following Would Cause Average Inventory Holdings to Decrease

Multiple Choice

Which of the following would cause average inventory holdings to decrease, other things held constant?

A) Fixed order costs double.
B) The purchase price of inventory items decreases by 50 percent.
C) The carrying price of an item decreases (as a percent of purchase price) .
D) The sales forecast is revised downward by 10 percent.
E) Interest rates fall.