understanding of the is not important for future planning
a)products
b)costs
c)external environment
d)present inventory
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When you are formulating future plans of a business, it is not important to understand the levels of present Inventory.
Inventory accounts are closed or rounded off at the end of a financial year, at the time of preparing the Balance Sheet.
Products, costs and external environment are important for planning the future.
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Understanding of the present inventory is not important for future planning.
Option: (d)
Explanation:
- The future planning requires an understanding of the products, cost involved and the external environment.
- For making plans for the future it is necessary to understand the future of the product and its demand.
- It is important to know the costs that will be involved in manufacturing the product and its future demand in the market.
- The environmental factors are dependent on the technological, political, economic and legal aspects.
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