Which one of the following statements about anticipation inventory is TRUE?
A) It is a portion of inventory that is used to absorb only the variation in demand.
B) It is a portion of inventory that is used to absorb variation in demand or supply.
C) It is a portion of inventory that is reserved for the best customer.
D) It is a portion of inventory that is used to absorb only the variation in supply.

Question

Quizplus · Accepted Answer

Anticipation inventory is used to absorb variations in both demand and supply, allowing businesses to manage fluctuations effectively.

Which One of the Following Statements About Anticipation Inventory Is