Question

A key aspect of inventory management is to create and maintain an accurate record, or "paper trail," of products received and sold. Which is not a necessary reason for this?

A. To know the merchandise on hand at any given time
B. To know the price of every item at any given time
C. To see how well a product is selling
D. To know when it's time to reorder merchandise

Answer 1

The key aspects of inventory management include knowing the merchandise on hand, when to reorder, and understanding product sales.

Step-by-step explanation:

One of the key aspects of inventory management is to create and maintain an accurate record of products received and sold. This is important for several reasons:

1. To know the merchandise on hand at any given time: By keeping an accurate record, businesses can easily track the quantity of products they have in stock. This helps them avoid stockouts or overstocking, which can both be costly for the business.
2. To know when it's time to reorder merchandise: By monitoring inventory levels, businesses can determine when they are running low on a particular product and need to place an order with their suppliers. This helps them ensure they have enough stock to meet customer demand without holding excess inventory.
3. To see how well a product is selling: By comparing the records of products received and sold, businesses can analyze sales data and identify their best-selling products. This information helps them make informed decisions about purchasing and marketing strategies.

However, the price of every item at any given time is not a necessary reason for creating and maintaining an accurate inventory record. While it can be helpful to have price information for financial reporting and profit calculations, it is not essential for inventory management purposes.