To What Does the Term Inventory Refer

question 106

Multiple Choice

To what does the term inventory refer?

• A)It refers to the amount of goods being stored.
• B)It refers to minimizing storage costs.
• C)It refers to the amount of goods being sold.
• D)It refers to the marketing function of holding goods.
• E)It refers to the quality of goods being stored.

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Definitions:

Net Investment

The total spending on new capital assets minus the depreciation on existing assets, indicating the growth in a company’s or economy's capital stock.

Depreciation

The method by which a company allocates an asset's cost over its useful life, reflecting the consumption of the asset's economic benefits.

Disposable Income

The reserve of funds households possess for spending and saving after income tax payments.

Savings

The portion of disposable income not spent on consumption of goods and services, set aside for future use.