Too much inventory on hand
A) ties up funds that could be used to improve operations
B) increases the cost to safeguard the assets
C) increases the losses due to price declines
D) all of these

Question

Quizplus · Accepted Answer

Too much inventory on hand ties up funds that could be used to improve operations, increases the cost to safeguard the assets, and increases the losses due to price declines. Therefore, all of these options are valid choices for why having too much inventory on hand can be a problem.

Too Much Inventory on Hand