​Excess Inventory Results in All of the Following Except

question 188

Multiple Choice

​Excess inventory results in all of the following except

• A) ​tied-up funds that could be used to improve operations
• B) ​lost sales
• C) ​increased storage expense
• D) ​increased risk of loss due to damage

---

Definitions:

Costs

The value of financial resources consumed in the production of goods or services, including material, labor, and overhead expenses.

Net Income

This is the total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.

Interest Expense

The cost incurred by an entity for borrowed funds, typically expressed as an annual percentage rate on loans or bonds.

Depreciation

The accounting process of allocating the cost of tangible assets over their useful lives, reflecting wear and tear, deterioration, or obsolescence.