Match the Inventory-Related Accounts to Costs That May Be Included

question 196

Multiple Choice

Match the inventory-related accounts to costs that may be included in inventories for retailers and manufacturers.
-Cost of materials which are not yet entered into the production process.

• A)Merchandise Inventory
• B)Raw Materials
• C)Work in Process
• D)Finished Goods
• E)Cost of Goods Sold

---

Definitions:

Output of Industry

The total amount of goods and services produced by an industry or sector within a specific period, often used to gauge economic health and productivity.

Economic Profit

The difference between total revenues and total costs, taking both explicit and implicit costs into account, indicating the additional income over the opportunity cost of capital.

Industry Z

An unspecified sector of the economy, used as a placeholder to discuss economic concepts without specifying an industry.

Output Expansion

The increase in the production of goods or services by a firm or economy over time.