Final answer:
Inventory waste ties up money in unsold products, materials, and storage space, leading to unnecessary costs and reduces a company's financial flexibility.
Step-by-step explanation:
The waste that ties up money in unsold product, material, and storage space is c) Inventory waste. Inventory waste occurs when a company holds more stock than is necessary for immediate production or sales. This leads to excess capital being tied up in inventory, which could have been used elsewhere within the business, thereby reducing the liquidity and financial flexibility of the company. Holding excessive inventory also incurs additional costs related to storage, management, and the risk of obsolescence. Therefore, minimizing inventory to a level that aligns with production needs and demand helps in reducing such wasteful expenses and improving a business's overall efficiency.