The Main Objectives of Inventory Management Are to Provide Customers

question 42

Multiple Choice

The main objectives of inventory management are to provide customers with the right number of products and ______.

• A)to provide these at the right place and at the right time
• B)to keep inventory at a maximum
• C)to ensure cost of production is low
• D)to avoid stock-outs

---

Definitions:

Production Costs

The total expenses incurred in the manufacturing or production of goods, including materials, labor, and overhead.

Sold Goods Awaiting Shipment Inventory

Goods that have been sold but are still in the inventory because they have not yet been shipped to the buyer.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that is used globally for the preparation of public company financial statements.

Inventory Holding Gains

Gains resulting from an increase in the value of inventory that a company holds over a period.