Which method is NOT a way to discourage producing for inventory?
A)Include non-financial measures when evaluating performance
B)Evaluate performance on a quarterly basis only
C)Incorporate a carrying charge for inventory
D)Focus on careful budgeting and inventory planning

Question

Quizplus · Accepted Answer

Evaluating performance on a quarterly basis only does not discourage producing for inventory as it still allows for periodic builds of inventory every quarter. The other options such as including non-financial measures, incorporating carrying charges, and focusing on careful budgeting and planning do discourage producing for inventory by showing the true cost and impact of holding excess inventory.

Which Method Is NOT a Way to Discourage Producing for Inventory