Consider the system composed of four processes linked by a conveyor belt.There is no storage between these processes pictured below and market demand exceeds the company's ability to produce.Which statement is best? 
Definitions:
Cost Of Goods Sold
The immediate expenses related to the manufacturing of products a company sells, which encompass both materials and labor.
Three Inventory Accounts
Refers to the three main types of inventory accounts on the balance sheet: raw materials, work-in-progress, and finished goods.
Direct Materials
Raw materials directly used in the manufacturing of a product, directly traceable to the finished product.
Office Supplies
Items like pens, paper, calculators, and computers that are used on a daily basis within an office setting.
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