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Why is it sometimes best to sell inventory at less than cost

1. Historical Costs and Inventory Decisions

Explain why it is sometimes best to sell inventory for less than the amount paid for it.

Solution Preview

There are a number of reasons why a company might sell inventory at less than cost:

1. They need some quick cash for a loan coming due or payment of taxes, or another unrelated issue

2. The inventory might be decreasing in value because of obsolescence, perishable concerns, or fad changes in the market

3. The inventory might be very high end, ...

Solution Summary

The solution provides a listing of 10 reasons why a company might decide to sell inventory at less than cost. Each reason is explained in the context of possible effects or consequences of the decision.

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