Considering the accounting principles, the Make-to-stock; is part of the production process and occurs when the company is trying to increase its inventory.
This is because Make to Stock, otherwise referred to as MTK, is a method business owner often use to ensure the product is readily available and delivered at the point of purchase.
Make to Stock is a traditional method of production that is carried out in the hope that consumers will soon come and buy the products. Thereby, the company produces huge products at a given time and stores them as inventory.
Hence, in this case, it is concluded that the correct answer is "Make to stock; production, " respectively.
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