What are the risks faced by a company that stockpiles raw material inventory when commodity prices are rising fast? All of these risks are faced by the company. Commodity prices are volatile and if they fall suddenly the company would incur a loss and may not be able to sell its inventory quickly especially if the economy slows down simultaneously. High inventories are subject to obsolescence risk. Inventories are associated with storage and financing costs which may not be recoverable at the time of sale.

Current Attempt in Progress What are the risks faced by a company that stockpiles raw material inventory when commodity prices are rising fast? O All of these risks are faced by the company. O Commodity prices are volatile and if they fall suddenly the company would incur a loss and may not be able to sell its inventory quickly especially if the economy slows down simultaneously. O High inventories are subject to obsolescence risk. O Inventories are associated with storage and financing costs which may not be recoverable at the time of sale. Save for Later Attempts: 0 of 1 used Submit