Although the Stock of Inventories Fluctuates Over Time Because Production

question 45

Essay

Although the stock of inventories fluctuates over time because production is smoothed relative to sales, at any point in time, inventories may be unexpectedly high or low because sales have been unexpectedly low or high. Explain how this is likely to affect future production.

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Definitions:

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders (DSM-5), 5th ed.; the major classification of psychological disorders in the United States.

Binge-Eating Disorder

An eating disorder characterized by recurrent episodes of eating large quantities of food (often very quickly and to the point of discomfort); it’s marked by a feeling of loss of control during the binge.

Gambling Addiction

A compulsive need to continue gambling despite harmful negative consequences or a desire to stop, classified as a behavioral addiction.

World Health Organization

An international agency of the United Nations, established in 1948, responsible for promoting health, safety, and well-being worldwide.