What does inventory control encompass?

Inventory control encompasses the processes involved in managing a company’s inventory efficiently and effectively. This includes receiving goods into the inventory, issuing or distributing items as needed, and tracking the quantities and locations of inventory items over time.

Effective inventory control is essential for ensuring that a business has the right amount of inventory on hand to meet customer demand without overstocking, which can lead to increased holding costs or spoilage. Tracking inventory also helps in maintaining accurate financial records and can inform purchasing decisions.

The other options pertain to different aspects of financial and operational management. For instance, generating financial statements focuses on summarizing a company’s financial status, negotiating with suppliers deals with procurement and pricing strategies, and monitoring employee performance is related to human resource management rather than inventory. Therefore, the correct choice accurately represents the core functions of inventory control.