COST ACCOUNTING
INVENTORY AND PRODUCTION MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The overall objective of inventory management is to achieve satisfactory levels of customer service while keeping inventory costs reasonable.
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True
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False
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Explanation:
Detailed explanation-1: –the overall objective of inventory management is to achieve satisfactory levels of customer service while keeping inventory costs within reasonable bounds.
Detailed explanation-2: -True, inventory control is one part of minimizing holding costs and potential stock-outs.
Detailed explanation-3: -The primary purpose of inventory management is to ensure there is enough goods or materials to meet demand without creating overstock, or excess inventory.
Detailed explanation-4: -The objective of inventory management is to minimize the cost of holding inventory. The two main concerns of inventory control relate to the costs and the level of customer service.
There is 1 question to complete.