Inventory is called an "evil" because it
A) ties up funds that are not actively productive.
B) reduces cash when it is sold.
C) is subject to deterioration.
D) is a large asset for many firms.

Question

Quizplus · Accepted Answer

Inventory ties up funds that are not actively productive, which means that a company's money is sitting in inventory rather than being invested in other profitable ventures. This lack of liquidity can be seen as a hindrance to the company's growth and productivity.

Inventory Is Called an "Evil" Because It