Which of the Following Is True of Inventory Level

question 52

Multiple Choice

Which of the following is true of inventory level?

• A) A purchasing manager would purchase higher inventories when prices are low and lower inventories when prices are high irrespective of inventory requirement.
• B) A marketing manager would like to have smaller inventories of finished products to ensure production of goods as per customer specification.
• C) A financial manager would keep inventory levels low to ensure that the firm's money is not unwisely invested in excess resources.
• D) A manufacturing manager would keep raw materials inventories low to ensure use of latest materials in production process.

---

Definitions:

U.S. Dollar

The official currency of the United States, commonly used worldwide as a standard for financial transactions.

Foreign Imports

Goods or services brought into a country from abroad for sale.

Foreign Currencies

The currencies of other countries that are used in international transactions or are sought as investments.

Swiss Franc Appreciates

Describes the increase in value of the Swiss Franc relative to other currencies.