Zeta Manufacturing is a public company that issues financial statements using generally accepted accounting principles. The company has begun experiencing a slowdown in sales growth. Explain why the managers of Zeta have an incentive to build up unnecessarily high levels of finished goods inventories.

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The Answer of Zeta Manufacturing is a public company that issues financial statements using generally accepted accounting principles. The company has begun experiencing a slowdown in sales growth. Explain why the managers of Zeta have an incentive to build up unnecessarily high levels of finished goods inventories.

Zeta Manufacturing Is a Public Company That Issues Financial Statements