Manufacturers Usually Classify Inventory into All the Following General Categories

question 183

Multiple Choice

Manufacturers usually classify inventory into all the following general categories except

• A) work in process
• B) finished goods
• C) merchandise inventory
• D) raw materials

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Definitions:

Gross Margin

A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. It represents the proportion of each dollar of revenue that the company retains as gross profit.

Local Retailer

A business that sells products directly to consumers in a specific geographical area.

Cost of Goods Sold

The costs directly associated with manufacturing the products a company sells, such as materials and labor expenses.

Contribution Margin

The amount of revenue from sales that exceeds variable costs, indicating how much contributes to covering fixed costs and generating profit.