Question

State whether the following statement is true or false: Too many slow moving, high value goods into
result in too much cash tied up in inventory​

Answer 1

Answer: True

Explanation:

High value goods were purchased with a lot of cash and if they are slow moving, the company will not be able to sell them fast enough and realized the cash that was spent to be able to purchase them. A typical example of such inventory are expensive motor vehicles.

The ideal type of inventory is one that is fast moving and high value because it gives a business a higher amount of cash at a higher frequency.