Inventory is called a "necessary evil";it is "necessary" because
A)it ties up funds that are not actively productive.
B)supply and demand cannot be managed precisely with day-to-day operations.
C)it reduces cash when it is sold.
D)it deteriorates so therefore a certain percent is lost to spoilage and waste.

Question

Quizplus · Accepted Answer

Inventory is necessary because it acts as a buffer to manage the uncertainties in supply and demand, ensuring that operations can continue smoothly even when there are fluctuations.

Inventory Is Called a "Necessary Evil";it Is "Necessary" Because