By overstating an inventory write-down, profits are increased in future periods as the inventory is sold.
Inventory refers to all the items, goods, goods, and materials that a business holds for sale in the market to make a profit. Example: If a newsagent uses a vehicle to deliver newspapers to customers, only the newspapers are considered inventory. A car is treated as an asset.
The manufacturer has three types of inventory. There are raw materials (awaiting processing), work in process (processed), and finished goods (preparing for shipment).
Learn more about inventory here: https://brainly.com/question/24868116
#SPJ4
