IInventory Management & Budgetory Control System , as a current asset, differs from other current assets because only financial managers are not involved. Rather, all the functional areas finance, marketing, production, and purchasing, are involved. The views concerning the appropriate level of inventory would differ among the different functional areas.

 

The Conflicting view points of the various functional areas regarding the appropriate inventory levels in order to fulfill the overall objective of maximizing the owner s wealth. Thus, inventory management, like the management of other current assets, should be related to the overall objective of the firm.