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Business Arithmetic — Entrepreneurship STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipBusiness Arithmetic5 Marks
Question
Why is inventory control essential for an enterprise?
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Answer

Inventory control is essential for an enterprise because:
  1. It ensures the availability of materials in the production process whenever it is needed.
  2. To ensure efficient and effective utilization of raw materials.
  3. It helps in removing all bottlenecks.
  4. To ensures prompt and regular delivery of materials to consumers.
  5. To examine quantity discount for large and lump sum order to stabilize the fluctuation of demand side.

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