The Objective for Managing Inventory Is to ________

question 288

Multiple Choice

The objective for managing inventory is to ________.

• A) turn over inventory as quickly as possible without losing sales from stockouts
• B) improve the average collection period without affecting the sales
• C) make payment for the inventory as slowly as possible without losing suppliers
• D) reduce the time taken to process inventory into finished goods and increase sales

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Definitions:

Assignment of Rights

The transfer of rights, properties, or obligations from one party to another.

Third-Party Beneficiary

A person or entity that benefits from a contract made between two other parties, despite not being a party to that contract themselves.

Delegation

The act of assigning responsibility or authority from one person to another to carry out specific activities, while the original party remains accountable for the outcome.

Delegator's Duty

In the context of delegated tasks, this refers to the responsibility of the individual or party who has transferred a duty to another to ensure the duty is performed appropriately.