Which of the Following Statements Regarding Inventory Is True

question 57

Multiple Choice

Which of the following statements regarding inventory is true?

• A)Wholesalers and retailers incur a single type of cost,the purchase price,of the inventory they sell.
• B)It is not unusual for inventories to account for half the total assets of a manufacturer.
• C)Wholesalers and retailers buy merchandise and transform the product before offering it to resale to customers.
• D)The inventory of a manufacturer takes three distinct forms-direct materials,direct labor,and finished goods.

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