Suppose a toy store overestimated the demand for a toy in 2014 and, as a result, had an unexpectedly large number of them on hand at the end of that year.How was the value of the increased inventory of those toys counted?

Question

Quizplus · Accepted Answer

The value of the increased inventory of toys is counted as investment in the year the inventory increase occurred, which is 2014. This is because changes in inventory levels are considered part of investment in national accounting.

Suppose a Toy Store Overestimated the Demand for a Toy