What is the basic purpose of inventory analysis?
A) To provide precise inventory valuations when generating accounting records for the firm's annual report.
B) Because there are costs for making each new production setup, inventory allows management to reduce the number of setups.
C) To provide a safeguard for variation in raw material delivery time.
D) To take advantage of economic purchase order size.
E) To specify when items should be ordered and how large the order should be.

Question

Quizplus · Accepted Answer

Inventory analysis helps determine the optimal timing and quantity for ordering inventory to ensure efficient operations and cost management.

What Is the Basic Purpose of Inventory Analysis