Which of the Following Is an Inventory Account for a Merchandise

question 100

Multiple Choice

Which of the following is an inventory account for a merchandise company?

• A) Work in process inventory
• B) Manufacturing overhead inventory
• C) Merchandise inventory
• D) Finished goods inventory

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Definitions:

Business Operations

The activities that businesses engage in on a day-to-day basis to increase the value of the enterprise and earn a profit.

EOQ

Economic Order Quantity, a formula used to determine the optimal quantity of inventory to order that minimizes total inventory costs.

Fixed Ordering Costs

Fixed ordering costs are consistent expenses incurred in the process of ordering inventory or supplies, regardless of the order size.

Material Cost

The expense incurred to purchase or produce the raw materials used in manufacturing a product.