Correct option is A
Effective inventory management contributes to operational efficiency and financial stability primarily by balancing stock levels to prevent both overstocking and stock-outs. Maintaining appropriate inventory ensures that production and customer demand are met without tying up excessive capital in surplus stock or facing delays due to shortages. While identifying products, categorizing items, and maintaining product condition are important practices, the core impact on efficiency and financial health comes from optimizing stock levels to match demand and supply.
