What does the term 'deadstock' refer to in inventory terms?

Prepare for your Chartering and Brokerage Exam. Use multiple choice questions, flashcards, hints, and explanations to enhance your study. Get set to ace your exam!

Multiple Choice

What does the term 'deadstock' refer to in inventory terms?

Explanation:
Deadstock is inventory that isn’t selling and isn’t expected to sell quickly. It represents stock that ties up capital because demand is very low or absent, rather than being about the physical condition or accessibility of the items. In other words, it’s excess or slow-moving stock that may become obsolete or difficult to sell over time. It’s not simply “unreachable” inventory, nor is it defined by being damaged or perishable.

Deadstock is inventory that isn’t selling and isn’t expected to sell quickly. It represents stock that ties up capital because demand is very low or absent, rather than being about the physical condition or accessibility of the items. In other words, it’s excess or slow-moving stock that may become obsolete or difficult to sell over time. It’s not simply “unreachable” inventory, nor is it defined by being damaged or perishable.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy