Question

True or False: Overstocking products can lead to increased costs associated with storage space.

Select one:
O True
O False

Answer 1

Overstocking products can lead to increased costs associated with storage space.

Step-by-step explanation:

True

Overstocking products can lead to increased costs associated with storage space. When a business overstocks products, they need more warehouse space to store the excess inventory. This can incur additional costs, such as rent, utilities, and maintenance for the warehouse.

For example, if a retail store overstocks on a particular product that has a limited shelf life, they may end up with expired inventory that needs to be disposed of, resulting in financial losses.

Learn more about Storage space costs