Firms make planned changes to their inventories:
A)if they are expecting either faster or slower sales.
B)if they are expecting a faster sale.
C)if they are expecting a slower sale.
D)if they are expecting a decrease in labor costs.

Question

Quizplus · Accepted Answer

Planned changes in inventories are made in response to expected changes in sales. Therefore, if a firm is expecting either faster or slower sales, it may make planned changes to its inventories. The other options are not relevant to inventory planning.

Firms Make Planned Changes to Their Inventories