Business High School

What is the drawback of carrying more inventory than is needed?
A. Customers can have a difficult time choosing between all the
product options
B. Purchasing large amounts of goods usually results in a lower price
per good.
C. Too many resources can be tied up in the inventory.
D. Suppliers do not like to receive extremely large orders for
inventory

Answers

Answer 1

Answer:

C. Too many resources can be tied up in the inventory.

Explanation:

Hope this helps!

Answer 2

Too many resources can be tied up in the inventory is the drawback of carrying more inventory than is needed. The correct option is C.

What are the uses of inventory?

The state of the goods is also examined during an inventory count. Inventory counts are useful for determining assets and liabilities in accounting. Inventory managers frequently utilize this data to estimate future stock requirements and oversee budgets. Inventory counts let you identify which stocks are selling well.

Poor quality products and degradation may result from an excess of inventory. It's likely that you have low inventory turnover, which implies you're not regularly turning all of your products if you have high volumes of excess stock. Unfortunately, unsold inventory that is stored in warehouses may start to deteriorate and expire.

Thus, the correct option is C.

Learn more about inventory here:

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