____ can result in management overinvesting in inventory.
A)Bulging raw materials
B)Stockup
C)Safety stock
D)Excess baggage

Question

Quizplus · Accepted Answer

Safety stock refers to additional inventory that is kept to prevent stockouts and ensure a smooth production or sales process. Holding too much safety stock can lead to overinvestment in inventory, tying up capital that could be used elsewhere in the business.

____ Can Result in Management Overinvesting in Inventory