Which of the following is true of maintaining appropriate inventory levels?
A) A financial manager's general disposition toward inventory levels is to keep them low.
B) A marketing manager would like to have low inventories of a firm's finished products.
C) A manufacturing manager would keep raw materials inventories low for the sake of lower unit production costs.
D) A purchasing manager prefers lower level of inventories than are actually needed at the time.

Question

Quizplus · Accepted Answer

Financial managers generally prefer to keep inventory levels low to reduce holding costs and to free up cash for other investments or operational needs. This approach helps in managing the company's cash flow more efficiently and reduces the risk of inventory obsolescence.

Which of the Following Is True of Maintaining Appropriate Inventory