Which of the Following Statements Best Explains the Term Inventory

question 90

Multiple Choice

Which of the following statements best explains the term inventory?

• A) It is the amount and number of raw materials, parts, and finished products that a company has in its possession.
• B) It is the amount and number of products or services that a company dispatches to the market annually.
• C) It is the capability of a company to produce a set number of products per month.
• D) It is the capability of a company to buy raw materials or parts for production processes.

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Definitions:

Physical Characteristics

The observable and measurable attributes of a body, such as height, skin color, and body shape.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment; involves questioning, analysis, synthesis, and reflection.

Cognitive Skills

Mental capabilities that involve processing information, understanding concepts, solving problems, and making decisions.

Inferences

The act of drawing conclusions based on evidence and reasoning rather than explicit statements.