What May Be the Cause If the Value of Inventory

question 71

Multiple Choice

What may be the cause if the value of inventory is greater than the value of the net working capital?

• A) Receivables are too high.
• B) Cost of goods sold (COGS) is too high.
• C) Inventory is too high.
• D) High level of obsolescence.

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Definitions:

Adjacent Rectangular Corrals

A configuration of rectangular enclosures that share a common side, often used in farming or livestock management scenarios.

Enclosed Region

An area that is completely surrounded or bounded by a boundary, such as a shape or curve in geometry.

Discriminant

In algebra, the discriminant is a quantity expressed in terms of the coefficients of a polynomial equation that can determine the nature and number of the roots.

Real Solutions

Solutions to an equation that are real numbers, as opposed to imaginary or complex numbers.