An unexpected rise in sales of a product leads to ______.1. planned de

1.	An unexpected rise in sales of a product leads to ______.1. planned decumulation of inventory2. unplanned decumulation of inventory3. planned accumulation of inventory4. unplanned accumulation of inventory
Answer» Correct Answer - Option 2 : unplanned decumulation of inventory The correct answer is unplanned decumulation of inventory. Inventories are the unused raw materials or unfinished goods and unsold goods, that a firm carries from a year to the next year. Change in inventories may be planned or unplanned. An unexpected decrease in the stock of goods due to the rise in sales is called unplanned decumulation of inventory. An unexpected increase in the stock of goods due to a fall in sales is called the unplanned accumulation of inventories. The planned accumulation of inventories based on the anticipated sales for a particular period or year is called planned accumulation of inventories. Similarly, the planned decumulation of inventories based on the anticipated sales for a particular period or year is called planned decumulation of inventories. Final inventory is calculated as: Final Inventory = Opening Inventory + Production - Sale.

An unexpected rise in sales of a product leads to ______.1. planned decumulation of inventory2. unplanned decumulation of inventory3. planned accumulation of inventory4. unplanned accumulation of inventory

Answer» Correct Answer - Option 2 : unplanned decumulation of inventory

The correct answer is unplanned decumulation of inventory.

Inventories are the unused raw materials or unfinished goods and unsold goods, that a firm carries from a year to the next year.
Change in inventories may be planned or unplanned.
An unexpected decrease in the stock of goods due to the rise in sales is called unplanned decumulation of inventory.

An unexpected increase in the stock of goods due to a fall in sales is called the unplanned accumulation of inventories.
The planned accumulation of inventories based on the anticipated sales for a particular period or year is called planned accumulation of inventories.
Similarly, the planned decumulation of inventories based on the anticipated sales for a particular period or year is called planned decumulation of inventories.
Final inventory is calculated as:
- Final Inventory = Opening Inventory + Production - Sale.