Asked by Elizabeth Steinke on Jul 05, 2024
Verified
Producing goods on demand versus for inventory will tend to decrease the inventory period.
Inventory Period
The average length of time items remain in inventory before being sold, indicating the efficiency of a company's inventory management.
Producing Goods
The process of creating, manufacturing, or assembling products or goods from raw materials or components.
Demand
The consumer's desire and willingness to pay a price for a specific good or service.
- Recognize the effects of inventory management on the cash and operating cycles.
Verified Answer
IA
Ibrahem Ashraf Ibrahem Shaheen 21811321Jul 11, 2024
Final Answer :
True
Explanation :
Producing goods on demand means manufacturing items only as they are needed for orders, which reduces the amount of time products sit in inventory before being sold, thus decreasing the inventory period.
Learning Objectives
- Recognize the effects of inventory management on the cash and operating cycles.