Exam IIA-CIA-Part3 All QuestionsBrowse all questions from this exam
Question 8

What must be monitored in order to manage risk of consumer product inventory obsolescence?

1. Inventory balances.

2. Market share forecasts.

3. Sales returns.

4. Sales trends.

    Correct Answer: C

    To manage the risk of consumer product inventory obsolescence, both inventory balances and sales trends must be monitored. Inventory balances help track the quantity of products on hand, while sales trends provide insights into how products are selling over time. This combination allows for a comprehensive understanding of product movement and helps identify any products that may become obsolete due to declining sales.

Discussion
chung002Option: C

obsolency risk, one has to look at past sales (sales trend) and inventory balance.

John1237

It's therefore a vision based on the past and the present.