Which of the Following Is Not an Example of Inventory

question 16

Multiple Choice

Which of the following is not an example of inventory carried to satisfy independent demand?

• A)spare parts
• B)finished product
• C)raw materials
• D)All the above satisfy independent demand.

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Definitions:

Financial Position

A snapshot of a company’s assets, liabilities, and equity at a specific point in time, indicating its economic resources and obligations.

Cost Of Goods

The specific expenses linked to the manufacture of goods a company sells, which involves materials and labor.

Inventory Cost

The total cost associated with holding and acquiring inventory, including purchase prices, delivery charges, and handling fees.

Average Cost

A method of inventory valuation where the cost of goods sold and ending inventory is determined by taking the weighted average of the cost of all items available for sale during the period.