Here are some statements about production to stock:

Production to stock is justified when the plant has excess production capacity. Inventory production is desirable to avoid wasting resources. Inventory production may be justified when the manufacturer is facing sharp fluctuations in demand for its products. Inventory production may lead to an increase in the accounting profit that will be reported in the near future.

Which of the above statements is true / correct?

One answer must be chosen:

Only statements 3 and 4 are correct.

Just say 2.

Just say 1.

Just say 3.

Just say 4.