Question: Ace, Inc. is evaluating the following 2 inventory systems. A supplier has offered a discount for buying larger inventory quantities on shorter credit terms. The

has offered a discount for buying larger inventory quantities on shorter credit

Ace, Inc. is evaluating the following 2 inventory systems. A supplier has offered a discount for buying larger inventory quantities on shorter credit terms. The analysis follows: Based on the data presented, it is fair to say that: We should forgo the discount since we are better off keeping our cash longer The quantity discount more than offsets the shorter DPO and higher holding costs

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