Respuesta :
The additional inventory investment that is often required for new projects is partially offset by increasing accounts payable.
Why is inventory investment important?
Holding inventory helps a business run efficiently. To prevent the loss of prospective profits, finished goods inventory is kept. To prevent stock shortages during an unanticipatedly high demand time, inventories are kept. If there are no stockpiles and demand exceeds supply, some business is lost to competitors.
How do you calculate inventory investments?
Subtract the amount of inventory you need from the amount of inventory you already have to determine the firm's unplanned inventory investment. The business has more inventory than is necessary if the unplanned inventory investment that results is more than zero.
Learn more about inventory investment: https://brainly.com/question/4415290
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