Which statement is not related to the inventory.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → It is a flow variable.
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(A) Unsold goods carried forward → True (definition of inventory).
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(B) Inventory value may increase at year-end → True (depends on unsold stock).
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(C) Change in inventories = Production − Sales → True (this gives flow of inventory change).
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(D) It is a flow variable → False, because inventory itself is a stock variable.