Which of the Following Situations Is an Example of Inventory

question 287

Multiple Choice

Which of the following situations is an example of inventory being held as a way to balance supply and demand?

• A) A manufacturer holds inventory of key components to maintain a level production schedule.
• B) A manufacturer of seasonal products builds finished-goods inventory before the peak selling period.
• C) A distributor maintains safety stock of slow-moving items at a central distribution center.
• D) A retailer stocks a variety of sizes and colors of a fast-selling item to avoid losing sales.

---

Definitions:

Debt Verification

The process of validating the accuracy and legality of a claimed debt, often initiated by the debtor seeking proof from the creditor.

Good Credit Rating

An evaluation made by credit bureaus that suggests a borrower has a high likelihood of repaying borrowed money on time.

Fair Debt Collection Practices Act

A U.S. federal law designed to eliminate abusive, deceptive, and unfair debt collection practices by debt collectors.

Standard Credit Company

A hypothetical or generic name for a company that provides credit services, evaluating creditworthiness and offering loans or credit to individuals and businesses.