The Significance of Average Inventory Is That ________________ Is a Function

Multiple Choice

The significance of average inventory is that ________________ is a function of average inventory. Inventory is an (a) _______. Working capital is tied up in material rather than an alternative asset. _______________________as well as costs of storing, insuring, and handling are incurred when inventory exists.

A) opportunity cost / liability / Inventory costs
B) inventory cost / liability / Opportunity costs
C) inventory cost / asset / / Opportunity costs
D) inventory cost / asset / Shrinkage
E) opportunity cost / asset / Shrinkage