What Is the Term for Finished Items Ready for Assembly

question 127

Multiple Choice

What is the term for finished items ready for assembly or products that need very little processing before they become a part of some other product?

• A)supplies
• B)raw materials
• C)accessory equipment
• D)component parts

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Definitions:

Residual Income

Earnings that exceed the minimum required return on a company's operating assets, demonstrating the excess of net operating income over its cost of capital.

Net Profit

The real income remaining after deducting operating costs that aren't considered in determining gross profit.

Invested Capital

The total amount of money that has been invested into a company by its owners, shareholders, and creditors, used for acquiring assets and funding operations.

Investment Turnover

A financial ratio that measures the efficiency of a company's use of its investments in generating sales revenue.