Which option describes an example of low-quality inventory?

Which option describes an example of low-quality inventory?

• A. High turnover rate
• B. Items with a long shelf-life
• C. Outdated or perishable goods
• D. High customer demand items

Answer: (C)

Choosing outdated or perishable goods as an example of low-quality inventory is accurate because such items generally have a limited market value and can result in financial loss for a business. Inventory that is outdated may not meet current consumer preferences, while perishable goods can become unsellable if they expire or spoil before they can be sold. This reflects poor inventory management, as businesses strive to maintain stock that is relevant and can be sold effectively. On the other hand, items with a high turnover rate, those with long shelf-lives, or products that are in high demand generally represent indicators of good quality inventory, as they tend to be more desirable and can contribute positively to a company's financial health.

Choosing outdated or perishable goods as an example of low-quality inventory is accurate because such items generally have a limited market value and can result in financial loss for a business. Inventory that is outdated may not meet current consumer preferences, while perishable goods can become unsellable if they expire or spoil before they can be sold. This reflects poor inventory management, as businesses strive to maintain stock that is relevant and can be sold effectively.

On the other hand, items with a high turnover rate, those with long shelf-lives, or products that are in high demand generally represent indicators of good quality inventory, as they tend to be more desirable and can contribute positively to a company's financial health.