wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Why should the producers maintain inventory stocks?

Open in App
Solution

Inventory stocks of finished goods are maintained to cope with demand for these goods in the near future. Inventory stocks of raw material are maintained to avoid all-time dependence on the market which is full of uncertainties.


flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Value Added Method
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon