Question

Which of the following represent reasons why managers closely monitor inventory levels? A. To minimize costs of inventory write-downs due to obsolete inventory. B. To ensure that sufficient units are available. C. To increase the average days in inventory.

Answer 1

B. To ensure that sufficient units are available.

Step-by-step explanation:

• Inventory management is essential for the business as it helps them to pull out stocks, manage multiple locations, and ensure accurate record-keeping thus an inventory solution makes all these [process is done easier.

• Maintaining it is necessary for the customer's needs and delivery of quality expectations and, meeting the estimated costs in time. An inventory is classified in four ways as raw material, work-in-process, finished goods, etc.

• Thus they are also classified as merchandised and not merchandised and need to be kept at a safety level in the organization. Keeps a trace of the available resources.