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:

Demand Forecasts

Predictions about future demand for a product or service based on historical data, trends, and analysis of market conditions.