While manufacturers incur increased costs due to forward buying,their margins are increased to off-set the price discounts.

Question

Quizplus · Accepted Answer

Forward buying typically involves purchasing larger quantities of goods in anticipation of future price increases or to take advantage of a discount. While this can lead to increased costs due to the need for additional storage and potential interest on borrowed funds to make the purchase, it does not inherently increase manufacturers' margins. Margins would only increase if the cost savings from the bulk purchase outweigh the additional costs incurred, which is not guaranteed.

While Manufacturers Incur Increased Costs Due to Forward Buying,their Margins