Question: Question 1 You work for ABC Ltd that is a fast-growing local organic fruit juice manufacturer. Since starting operations, ABC has been struggling to become

Question 1 You work for ABC Ltd that is a fast-growing local organic fruit juice manufacturer. Since starting operations, ABC has been struggling to become profitable. After careful analysis, you found that this issue might rest with the way it accounts for inventory. One definition of inventory according to Will Kenton, Inventory Investopedia, is: the raw materials, work-in-process goods, and completely finished goods that are considered to be the portion of a businesss assets that are ready or will be ready for sale.

(a) Discuss why inventory are needed at all. Provide an example for each of your reasons. (16 marks)

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