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What effect does carrying small inventories have on a firm? Carrying small inventories will reduce the inventory turnover ratio for the firm. Carrying small inventories

What effect does carrying small inventories have on a firm?

Carrying small inventories will reduce the inventory turnover ratio for the firm.

Carrying small inventories will result a higher risk of stock-outs and lost sales opportunities.

Carrying small inventories will result in a lower investment in current assets.

Carrying small inventories will result in higher financing and carrying costs for the firm.

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