A business owner who wants to make adjustments to her company's production would make use
of which of the following?
O
Inventory accounting
O
Managerial accounting
O
Production accounting
O
Financial accounting

Option A. Inventory accounting.

Explanation:

Inventory accounting refers to the kind of accounting which deals with the valuation and accounting for any type of change that may occur in inventoried assets.

A company's inventory is made up of the following:

- raw goods,

- in-progress goods, and

- finished goods that are ready for sale.

The goods listed above are in the three stages of production.

The purpose of inventory accounting is to attach a value to the items which exist in any of the three stages of production and therefore, record them as company assets.

Therefore, in the scenario given above if the business owner is to make any change to her company's production, she should make use of inventory accounting, because this is where a record of the materials for production is kept.

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