Which one of the following statements regarding inventory is not true?
A)An increase in inventory levels is always a sign of inefficiency in inventory management.
B)The measurement of inventory affects both the balance sheet and the income statement within an accounting period.
C)The ending inventory of one accounting period becomes the beginning inventory of the next accounting period.
D)The cost of merchandise can vary over time and may be affected by weather,politics,and technological innovation.

Question

Quizplus · Accepted Answer

An increase in inventory levels may be necessary for certain businesses or industries, such as retail stores preparing for busy seasons or manufacturers with longer production cycles. Therefore, it is not always a sign of inefficiency in inventory management.

Which One of the Following Statements Regarding Inventory Is Not