serves as a buffer between the various phases in the procurement-production-sales cycle of a manufacturing firm.
A)cash
B)accounts receivable
C)notes payable
D)inventories

Question

Quizplus · Accepted Answer

Inventories act as a buffer between the different phases in the procurement-production-sales cycle. They ensure that the production process can continue even if there are delays in the procurement of raw materials or fluctuations in customer demand. Inventories also provide a reserve of finished goods that can be quickly supplied to customers, which helps to maintain customer goodwill and loyalty. Cash, accounts receivable, and notes payable are all financial instruments and do not act as buffers in the production cycle.

Serves as a Buffer Between the Various Phases in the Procurement-Production-Sales