Question

what is a question that should be asked about inventory when forecasting?

what is the anticipated ratio of credit to cash sales?

what are the current storage costs?

is the companys liquidity sufficient?

how quickly can we collect cash receipts?

Explanation:

To determine the relevant question about inventory during forecasting, we analyze each option:

• "What is the anticipated ratio of credit to cash sales?" relates to sales payment methods, not inventory.
• "What are the current storage costs?" is relevant to inventory as storage costs are associated with holding inventory, which is a key consideration in inventory forecasting (to plan for costs related to storing inventory).
• "Is the company’s liquidity sufficient?" pertains to the company's financial liquidity, not directly to inventory.
• "How quickly can we collect cash receipts?" relates to cash collection, not inventory.

So the question about current storage costs is the one related to inventory for forecasting.

Answer:

B. What are the current storage costs?