Multiple choice

An increasing finished good stock as % to sales of a manufacturing Company indicates that (A) the market is getting competitive (B) the quality of the goods is not up to the mark (C) the production cost has increased (D) the production has decreased

  1. Only (A) and (B)

  2. Only (B) and (C)

  3. Only (C) and (D)

  4. Only (C)

  5. Only (D) and (A)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An increasing finished goods stock relative to sales suggests that goods are being produced but not sold. This can occur if the quality is poor (B) or if production costs have increased, making the goods less competitive or profitable (C).

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