Improperly Managed and Uncontrolled Stockpiling May Greatly Increase Inventory Carrying

question 37

True/False

Improperly managed and uncontrolled stockpiling may greatly increase inventory carrying costs and place a heavy drain on the funds of a small business.

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Definitions:

Gains and Losses

Financial terms referring to the positive or negative changes in value of investments or assets relative to their original purchase price.

Liquidation Gain/Loss

The financial result realized when the assets of a company are sold off or liquidated.

Liquidating

The process of converting a company's assets into cash and distributing it to the debt holders and shareholders during the winding up of the company.