Excess materials refer to stock that exceeds the reasonable requirements of an organization.

Question

Quizplus · Accepted Answer

Excess materials are defined as inventory or stock that exceeds the reasonable requirements of an organization. This overstocked inventory ties up valuable resources and increases carrying costs, which can negatively impact a company's financial health. Therefore, it is important for organizations to manage their inventory levels to prevent excess materials.

Excess Materials Refer to Stock That Exceeds the Reasonable Requirements