Why is managing inventory important to profit margins?
A) Because of numerous costs associated with strategy
B) Because of numerous costs associated with inventory
C) Because of numerous costs associated with big data
D) Because of numerous costs associated with logistics

Question

Quizplus · Accepted Answer

Managing inventory is important to profit margins because of numerous costs associated with inventory such as storage costs, handling costs, the cost of capital tied up in inventory, and the cost of lost or damaged inventory. By managing inventory effectively, a company can minimize these costs and improve its profit margins. Therefore, option B is the best choice.

Why Is Managing Inventory Important to Profit Margins