Which of the following statement is correct in relation to “need for proper inventory control”?

Q. Which of the following statement is correct in relation to “need for proper inventory control”?

A.            Inadequate inventory may lead to keep men and machines waiting.

B.            Materials do not constitute a significant part of the total production cost hence proper planning and controlling of inventories is not a big deal.

C.            Funds are not tied up in surplus stores and stocks.

D.            All of the above

Answer: Inadequate inventory may lead to keep men and machines waiting.