Which of the following is a possible consequence to a business of keeping its inventory levels too low? a) Too much cash is tied up, which could lead to adverse consequences for the business. b) Trade...

Which of the following is a possible consequence to a business of keeping its inventory levels too low?

a) Too much cash is tied up, which could lead to adverse consequences for the business.


b) Trade payables are likely to be too high, leading to problems in obtaining further credit from suppliers.


c) There may not be sufficient inventory to fulfil orders, with the result that potential customers go to another supplier.


d) The operating cycle is longer than it should be.




May 26, 2022
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