Question

Among the following: Inventory is the least likely to vary

directly with sales. Long Term Debt, Inventory, Cost of goods sold,
Accounts payable, Accounts receivable. True or false and why?

Answer 1

Inventory is the least likely to vary directly with sales.

Step-by-step explanation:

In the given list, Inventory is the least likely to vary directly with sales. Inventory refers to the goods that a business has produced but has not yet sold to consumers. It represents the stock of unsold goods sitting in warehouses and on shelves. Unlike items such as Cost of goods sold and Accounts receivable, which are directly related to sales, Inventory can vary independently of sales if business conditions change.