A Disadvantage of the Fixed-Period Inventory System Is That

A disadvantage of the fixed-period inventory system is that:

A) it involves higher ordering costs than the fixed quantity inventory system.
B) additional inventory records are required.
C) the average inventory level is decreased.
D) since there is no count of inventory during the review period, a stockout is possible.
E) orders usually are for larger quantities.

Correct Answer:

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