Which option describes an example of low-quality inventory?

Master the CFI CBCA exam with focused preparation. Enhance your understanding with flashcards and multiple-choice questions. Ready yourself for success!

Choosing outdated or perishable goods as an example of low-quality inventory is accurate because such items generally have a limited market value and can result in financial loss for a business. Inventory that is outdated may not meet current consumer preferences, while perishable goods can become unsellable if they expire or spoil before they can be sold. This reflects poor inventory management, as businesses strive to maintain stock that is relevant and can be sold effectively.

On the other hand, items with a high turnover rate, those with long shelf-lives, or products that are in high demand generally represent indicators of good quality inventory, as they tend to be more desirable and can contribute positively to a company's financial health.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy