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In accounting, inventory is recorded as current asset but it does not generate any profit. In fact, store is place of wastage and inefficiency but a necessary evil to run a business. So, we need to keep the inventory to a minimum level in order to support business as well as to minimize wastage
Thanks
Fully agree with Mr. Fazlur's answer
Inventory is one of the factors that you can control to improve your profitability. The way you source and manage inventory can impact the different profit levels of your income statement. Ignorance of how to use inventory to your advantage prevents you from maximizing operational efficiency.
