You Are the New Controller at Ralston Industries and You

question 159

Essay

You are the new controller at Ralston Industries and you have noticed that the company seems to carry a lot of inventory, both in direct materials and in finished goods.At a recent management meeting, you raised this observation.The managers agreed with your observation but stated that it was company policy to carry large inventories.Required:
Provide three reasons these managers might offer in support of carrying large inventories?

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Definitions:

Job Satisfaction

is the degree to which employees feel content with their jobs, including aspects such as the nature of the work, compensation, and work conditions.

Organizational Productivity

The measure of how efficiently and effectively a company or organization utilizes its resources to achieve its goals.

Personal Accountability

The willingness of an individual to take responsibility for their actions and outcomes, and to transparently communicate failures and mistakes.

Individual Interests

Personal goals, desires, or activities that an individual finds satisfying or meaningful.