Inventory management is often viewed as the need to keep enough product on hand to avoid stock-outs,however the financial manager is concerned about:

Question

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The financial manager is concerned with earning a reasonable rate of return on invested capital. This means that they may want to limit the amount of inventory they hold in order to avoid tying up too much capital in inventory that is not being sold quickly enough. Additionally, holding too much inventory can lead to higher carrying costs and potentially obsolescence or spoilage of the goods.

Inventory Management Is Often Viewed as the Need to Keep