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Question 13

Consignment inventory requires that manufacturers:

deliver their products to the consumer and payment from consumers is based on supply.

stock their products on retail stores shelves and payment from consumers is based on forecast.

deliver their products to the consumer and wait for payment until consumers requires to refill stock level.

stock their products on retail stores shelves and wait for payment until consumers purchase the product.

Correct Answer: D

Consignment inventory is a business arrangement where manufacturers place their products on retail store shelves and retain ownership until the product is purchased by the consumer. The store only pays for the products when they are sold, meaning the manufacturer bears the risk of unsold inventory.

Discussion

bawapetergomesOption: D

Answer is D. Consignment Inventory is owned by manufacturer until payment is received by selling it