Which of the Following Inventory Functions Does Not Involve End

question 125

Multiple Choice

Which of the following inventory functions does not involve end products sold to customers?

• A) anticipation inventory
• B) fluctuation inventory
• C) lot-size inventory
• D) MRO inventory
• E) speculative inventory

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Definitions:

Gross Margin

Gross margin is a company's net sales revenue minus its cost of goods sold, representing the efficiency of a company in managing its direct costs.

Absorption Costing

An accounting method that includes all direct and indirect manufacturing costs in the cost of a product.

Variable Costing

A costing method that includes only variable production costs in the cost of goods sold and uses fixed manufacturing overhead as a period cost.

Absorption Costing

A financial calculation approach that encompasses both direct and indirect expenses related to producing a product.