Which of the Following Describes the Relationship Between Production and Inventories

question 51

Multiple Choice

Which of the following describes the relationship between production and inventories?

• A) If planned inventories are greater than actual inventories, firms should increase production.
• B) If planned inventories are less than actual inventories, firms should decrease production.
• C) If planned inventories are less than actual inventories, firms should increase production.
• D) If planned inventories are greater than actual inventories, firms should decrease production.

---

Definitions:

Technicality

A minor detail affecting a legal decision or process that may have implications for the outcome of a case or the execution of a contract.

Ethical Practice

The adherence to moral principles and standards in professional and personal actions, ensuring fairness, transparency, and integrity.

Public Sector

The part of the economy that is controlled by the government, encompassing public services and enterprises.

Private Sector

The part of the economy that is owned and operated by individuals and companies for profit, not controlled by the state.