QMB Co. attempts to sell its inventory as quickly as possible, because no profit is produced until the inventory is sold.

Question

Quizplus · Accepted Answer

This statement is true. Until inventory is sold, it is considered an expense rather than a source of income for the company. Profit is generated only when the inventory is sold at a price that is higher than the cost of acquiring it. Therefore, it is in the best interest of the company to sell inventory as quickly as possible in order to generate profits.

QMB Co Attempts to Sell Its Inventory as Quickly as Possible