Which of the following depicts the practice that suppliers use to encourage customers to buy extra inventory so as to increase current-year sales?
A) Kiting
B) Channel stuffing
C) Redating transactions
D) Partial shipments

Question

Quizplus · Accepted Answer

Channel stuffing is a practice where suppliers try to increase their current-year sales by encouraging customers to buy extra inventory, often through incentives or discounts, even if they do not need it. This can result in inflated sales figures and artificially boost a company's financial performance. Kiting refers to the practice of fraudulently inflating bank balances and is not related to inventory management. Redating transactions and partial shipments are not practices that encourage the buying of extra inventory.

Which of the Following Depicts the Practice That Suppliers Use