Question

Inventories needed for the production of services and goods are called: inputs work-in-process. outputs finished goods. Question, A reason for keeping inventories low is that it can improv

Answer 1

Inventories are classified depending on their stage in production such as work-in-process and finished goods. Keeping inventories low improves cash flow and reduces storage and management costs.

Step-by-step explanation:

Inventories needed for the production of services and goods are categorized depending on their stage in the production process. Raw materials, work-in-process (goods in production but not yet complete), and finished goods (completed products awaiting sale) are the main inventory categories. One important reason for keeping inventories low is that it can improve cash flow and reduce costs associated with storing and managing excessive inventory.