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Is inventory an asset or a liability how do we determine if

1. Is inventory an asset or a liability? How do we determine if it is an asset or a liability? Might the determination be different for different people in the same organization? Please discuss, providing specific examples.

2. Why is reorder timing so important to a business? Is it more important than when we decide to refill our cars with gas, or the refrigerator with food? Why?

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