An unexpected rise in sales of a product leads to ______.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. unplanned decumulation of inventory
- Inventories are the unused raw materials or unfinished goods and unsold goods, that a firm carries from a year to the next year.
- Change in inventories may be planned or unplanned.
- An unexpected decrease in the stock of goods due to the rise in sales is called unplanned decumulation of inventory.