Which of the following may not be true if excessive quantities of inventory are ordered:
A)storage and interest costs may increase.
B)goods might have to be sold at large discounts.
C)there is a greater probability that goods will become damaged or obsolete.
D)would always lead to higher sales and resulting in higher profits.

Question

Quizplus · Accepted Answer

Ordering excessive quantities of inventory would not always lead to higher sales and resulting in higher profits. In fact, it could lead to increased costs and potential loss due to damage or obsolescence of the goods.

Which of the Following May Not Be True If Excessive