One of the younger workers in your production operations asks you, why do we have ending inventory at the end of the month Why not just produce the exact quantity on the sales budget How do you respond to these questions ...

Monthly ending inventory is necessary to meet product demand in the event that foreca ...

One of the younger workers in your production operations asks you, why do we have ending inventory

Question:

One of the younger workers in your production operations asks you, ‘‘why do we have at the end of the month? Why not just produce the exact quantity on the sales budget?’’ How do you respond to these questions?
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...