Inventory
A)is held against uncertain usage so that a supply of items is available if needed.
B)constitutes a small part of the cost of doing business.
C)is not something that can be managed effectively.
D)All of these are correct.

Question

Quizplus · Accepted Answer

Inventory is held to ensure that there is a supply of items available if needed. This is done to prevent stockouts, and to ensure that the business can fulfill customer demand.

Answer: B 
 The cost of holding inventory is typically only a small part of the cost of doing business. However, it can add up significantly over time, so it is important for businesses to manage their inventory effectively to minimize these costs.

Answer: C 
 This statement is incorrect. Inventory can be managed effectively by using inventory management techniques such as just-in-time inventory, ABC analysis, and economic order quantity. By managing inventory effectively, businesses can reduce costs and improve customer satisfaction.

Therefore, the best choice is A and B.