What is the difference between planned and unplanned inventory accumulation? Write down the relation between change in inventories and value added of a firm.
Easy

Solution

Planned inventory accumulation is the planned accumulation of inventories and stocks. Firms often experience an accumulation in their inventories based on the expected fall in sales or projected fall of demand from the consumers. Unplanned inventory accumulation happens when the inventories and stocks get accumulated due to an unexpected fall in sales and demand.

Was this answer helpful? 0 0