Which of the Following Is an Example of Finished-Goods Inventory

question 83

Multiple Choice

Which of the following is an example of finished-goods inventory for an apparel company?

• A)The clothes for sale in the company's retail store
• B)The buttons to be used on pants
• C)A batch of pants that are in the stitching process
• D)A bottle of fabric dye in the company's factory
• E)The thread used for stitching

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Definitions:

Security Market Line

A representation of the capital asset pricing model which shows the relationship between risk (as measured by beta) and expected return of investments.

Expected Return

The anticipated profit or loss an investment is predicted to generate, acknowledging the potential for volatility and risk.

Beta

A means to compare the stability and risk factor of a security or portfolio relative to the market as a whole.

SML (Security Market Line)

A line that represents the expected return of an investment as a function of its risk, with the risk measured by the investment's beta.