Which of the Following Is NOT a Purpose of Inventory

question 24

Multiple Choice

Which of the following is NOT a purpose of inventory?

• A) To protect against uncertainties.
• B) To allow economic production of batches.
• C) To provide for transit.
• D) To decrease obsolescence.

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Definitions:

Revenue

The income that a business receives from its normal business activities, usually from the sale of goods and services to customers.

Productivity

A measure of the efficiency of production, often expressed as the ratio of outputs produced to inputs used.

Hourly Wage

The hourly wage an employee receives for their work.

Equilibrium Purchase Price

The price at which the quantity of goods demanded by consumers equals the quantity of goods supplied by producers.