Hi sir, let's say for example a company is overtrading , the inventory holding could either increase or decrease right ?
If it increases: Could be because the firm is overbuying or intentionally building up inventory in anticipation of futher sales growth.
If it decreases: Means the inventory is selling fast. This could be as a result of poor planning by the management team.
Am i right to say this ?
Ask the Tutor ACCA FM
Overtrading
10y ago#1What you have written is fine :-)
Thank you sir.
10y ago#3You are welcome :-)
Sign into reply to this topic.