WIP Inventories Are

question 18

Multiple Choice

WIP inventories are

• A) not included on the balance sheet.
• B) are associated with manufacturing.
• C) are the same as VMI inventories.
• D) are not impacted by EOQ.

---

Definitions:

Calculation

The process of determining something by mathematical or logical methods.

Ratio

A quantitative relationship between two numbers, showing how many times one value contains or is contained within the other.

Equivalent Sales Increase

A metric that assesses additional revenue by comparing the effects of various marketing or operational initiatives as if they were translated directly into sales.

Profit Margin

A financial metric that represents the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a company.