Which is the best way for a company to prevent having outdated inventory on hand?
A) Store inventory securely
B) Classify inventory according to location in the company's records
C) Evaluate inventory turnover
D) Write down the inventory balance when a warehouse employee finds outdated inventory

Question

Quizplus · Accepted Answer

Evaluating inventory turnover is the best way for a company to prevent having outdated inventory on hand. This helps the company to track how quickly inventory is sold and move towards restocking faster-selling items, reducing the likelihood of outdated inventory being left on hand. Storing inventory securely and classifying inventory according to location in the company's records can help with inventory management but do not directly address the issue of outdated inventory. Writing down the inventory balance when outdated inventory is found does not prevent outdated inventory from being on hand in the first place.

Which Is the Best Way for a Company to Prevent