Q. 3. Inflation affects inventory control systems:

(a) Because monetary values have to be assigned to inventory items, and can upset accounting data/statements

(b)   Marginally, at most; because stock values are averaged out.

 (c)  Adversely, because profit margins swell due to inflation and  impact on prices of older stock and higher tax is acute.

  (d)  It hardly matters which goods were sold and which goods are left in inventory,   as long as inventory tallies physically.