Inventory: It refers to the total stock of such goods or items which are held by the business organizations with the purpose of sale. To explain: The given statement is true or not.

Question

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Answer 1

Question

Chapter 6, Problem 1Q

To determine

Inventory: It refers to the total stock of such goods or items which are held by the business organizations with the purpose of sale.

To explain: The given statement is true or not.

Expert Solution & Answer

Answer to Problem 1Q

This given statement is true.

Explanation of Solution

The effective management of inventory includes the prevention of goods wastage (leakage, spoil) which can be measured in the terms of money.
The major part of working capital is always invested in the inventory. So, effective management of inventory will also reduce the requirement of amount for the working capital.
Hence, effective management of inventory indirectly increase the amount of profit of the business organization.

Conclusion

“The key to successful business operations is effective inventory management.” is a true statement.

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Answer 2

Question

Chapter 6, Problem 1Q

To determine

Inventory: It refers to the total stock of such goods or items which are held by the business organizations with the purpose of sale.

To explain: The given statement is true or not.

Expert Solution & Answer

Answer to Problem 1Q

This given statement is true.

Explanation of Solution

The effective management of inventory includes the prevention of goods wastage (leakage, spoil) which can be measured in the terms of money.
The major part of working capital is always invested in the inventory. So, effective management of inventory will also reduce the requirement of amount for the working capital.
Hence, effective management of inventory indirectly increase the amount of profit of the business organization.

Conclusion

“The key to successful business operations is effective inventory management.” is a true statement.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 6, Problem 1Q

To determine

Inventory: It refers to the total stock of such goods or items which are held by the business organizations with the purpose of sale.

To explain: The given statement is true or not.

Expert Solution & Answer

Answer to Problem 1Q

This given statement is true.

Explanation of Solution

The effective management of inventory includes the prevention of goods wastage (leakage, spoil) which can be measured in the terms of money.
The major part of working capital is always invested in the inventory. So, effective management of inventory will also reduce the requirement of amount for the working capital.
Hence, effective management of inventory indirectly increase the amount of profit of the business organization.

Conclusion

“The key to successful business operations is effective inventory management.” is a true statement.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 6, Problem 1Q

To determine

Inventory: It refers to the total stock of such goods or items which are held by the business organizations with the purpose of sale.

To explain: The given statement is true or not.

Expert Solution & Answer

Answer to Problem 1Q

This given statement is true.

Explanation of Solution

The effective management of inventory includes the prevention of goods wastage (leakage, spoil) which can be measured in the terms of money.
The major part of working capital is always invested in the inventory. So, effective management of inventory will also reduce the requirement of amount for the working capital.
Hence, effective management of inventory indirectly increase the amount of profit of the business organization.

Conclusion

“The key to successful business operations is effective inventory management.” is a true statement.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 1Q

To determine

Inventory: It refers to the total stock of such goods or items which are held by the business organizations with the purpose of sale.

To explain: The given statement is true or not.

Expert Solution & Answer

Answer to Problem 1Q

This given statement is true.

Explanation of Solution

The effective management of inventory includes the prevention of goods wastage (leakage, spoil) which can be measured in the terms of money.
The major part of working capital is always invested in the inventory. So, effective management of inventory will also reduce the requirement of amount for the working capital.
Hence, effective management of inventory indirectly increase the amount of profit of the business organization.

Conclusion

“The key to successful business operations is effective inventory management.” is a true statement.

Answer 6

Chapter 6, Problem 1Q

To determine

Inventory: It refers to the total stock of such goods or items which are held by the business organizations with the purpose of sale.

To explain: The given statement is true or not.

Expert Solution & Answer

Answer to Problem 1Q

This given statement is true.

Explanation of Solution

The effective management of inventory includes the prevention of goods wastage (leakage, spoil) which can be measured in the terms of money.
The major part of working capital is always invested in the inventory. So, effective management of inventory will also reduce the requirement of amount for the working capital.
Hence, effective management of inventory indirectly increase the amount of profit of the business organization.

Conclusion

“The key to successful business operations is effective inventory management.” is a true statement.

Answer 7

Chapter 6, Problem 1Q

To determine

Inventory: It refers to the total stock of such goods or items which are held by the business organizations with the purpose of sale.

To explain: The given statement is true or not.

Answer 8

Expert Solution & Answer

Answer to Problem 1Q

This given statement is true.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

The effective management of inventory includes the prevention of goods wastage (leakage, spoil) which can be measured in the terms of money.
The major part of working capital is always invested in the inventory. So, effective management of inventory will also reduce the requirement of amount for the working capital.
Hence, effective management of inventory indirectly increase the amount of profit of the business organization.