Which method is NOT a way to discourage producing for inventory?
A)incorporate a carrying charge for inventory
B)focus on careful budgeting and inventory planning
C)include nonfinancial measures when evaluating performance
D)evaluate performance on a quarterly basis only

Question

Quizplus · Accepted Answer

Evaluating performance on a quarterly basis only may actually encourage producing for inventory, as there may be pressure to meet quarterly targets regardless of actual demand. On the other hand, options A, B, and C are all methods that can help discourage producing for inventory by either increasing costs associated with carrying excess inventory or promoting better planning and evaluation practices.

Which Method Is NOT a Way to Discourage Producing for Inventory