Why are large amounts of inventory considered wasteful?
A)It ties up cash that could be used for other, more useful purposes.
B)Inventory could spoil, get broken or stolen, or become obsolete.
C)Storing inventory is very expensive.
D)All of the above are reasons large amounts of inventory are considered wasteful.

Question

Quizplus · Accepted Answer

Large amounts of inventory are considered wasteful for multiple reasons listed in options A, B, and C. It ties up cash that could be used for other purposes, inventory could spoil, get broken or stolen, or become obsolete, and storing inventory is expensive. Therefore, option D, "all of the above," is the best choice.

Why Are Large Amounts of Inventory Considered Wasteful