Multiple Choice
Inventory is a "necessary evil" in a financial management system. It is an "evil" because
A) it ties up funds that are not actively productive.
B) supply and demand cannot be managed to coincide precisely with day-to-day operations.
C) it reduces cash when it is sold.
D) it deteriorates; therefore, a certain percent is lost to spoilage and waste.
Correct Answer:
Verified
Correct Answer:
Verified
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