A company sells 100 boxes of chocolate,yet it only produced 90 boxes of chocolate during the year.Which of the following is true?
A) It is impossible to sell more than is produced.
B) Inventory investment must be negative.
C) The price of the chocolate must have gone up.
D) The firm must have acquired the extra 10 boxes from another company.
E) The firm sold the chocolate but must have given 10 people an IOU.

Question

Quizplus · Accepted Answer

The company sold more boxes than it produced, indicating it used up existing inventory, leading to negative inventory investment.

A Company Sells 100 Boxes of Chocolate,yet It Only Produced