You Are the New Controller at Ralston Industries and You

question 56

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:
What reasons might these managers offer in support of carrying large inventories?

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Definitions:

Joint

A point at which two or more bones meet, allowing for movement and support in the skeletal system.

Resistance

In biology, the ability of an organism to defend against pathogens or in physics, the opposition that a substance offers to the flow of electric current.

Patient Positioning

The practice of adjusting a patient's posture or alignment to optimize safety and access during medical examination or treatment.

Back Injury

Any form of harm or damage to the back, including muscles, vertebrae, and connective tissues, which can result from accidents, strain, or other health conditions.