The purpose of carrying inventory is to
A) make different production processes more dependent on sales.
B) make sales more independent of the production process.
C) have collateral for loans.
D) improve the current ratio.

Question

Quizplus · Accepted Answer

The purpose of carrying inventory is to make sales more independent of the production process. This means that a company can meet customer demand without interrupting their production process. This leads to better customer service and improved sales. The other options are not the primary purpose of carrying inventory.

The Purpose of Carrying Inventory Is to