Which circumstance 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%.
C) The carrying price of an item decreases as a percentage of purchase price.
D) The sales forecast is revised downward by 10%.

Inventory Holdings

The quantity of goods and materials on hand at a particular period, reflecting a company's inventory levels.

Fixed Order Costs

Expenses that do not change with the quantity of inventory ordered, such as delivery charges or processing fees.

Purchase Price

The amount paid to buy a good, service, or asset.