Question

1. Flow n Breeze Ltd decided to offer a narrower range of clothing to its customers in the future. How might this decision affect the company’s level of clothing inventory? Clearly explain your answer. (4 points)

2. Lately, Decker Ltd found that there was a deterioration in the quality and reliability of bought-in components. These components are a critical part of the machinery which the business assembles for its customers. How might the poor quality of the components affect the company’s level of component inventory? Clearly explain your answer. (6 points)

Answer 1

1. If the management of Flow n Breeze Ltd commit to provide a narrower vary of vesture to its customers within the future, this call would render its exisiting inventory of vesture as useless. (other than that vary of vesture it desires to offer). it might got to right off this inventory and gift it at its vendable worth once accounting for marketing expenses. this is able to additionally result in Associate in Nursing inflation of in operation expenses within the close to future.

2. The poor quality of the elements have an effect on the corporate’s level of element inventory as a result of these elements ar vital to the operations of the company and a result company can got to rethink its call of either going for bought in elements or obtaining them tailor created specifically as per their needs or supply a merchant providing the elements with their needed quality norms. If the corporate chooses to discontinue such elements, it'll haven't any possibility however to jot down off such element from its inventory because it isn't any use to the corporate.

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