Q 6.3: Hanson Technology is a computer manufacturer. For years, Hanson has relied on the JIT inventory method. However, due to numerous recent stockouts by Hansons suppliers, Hansons management has decided to transition to the traditional inventory method. How will Hansons inventory levels change as a result of this switch?

• A: Hansons levels of finished goods and raw materials will all decrease but work in process will remain the same.

• B: Hansons levels of finished goods, work in process, and raw materials will all decrease.

• C: Hansons levels of finished goods, work in process, and raw materials will all increase.

• D: Hansons level of finished goods will increase but raw materials and work in process will remain the same.