Which of the Following Is an Example of Inventory

question 2

Multiple Choice

Which of the following is an example of inventory?

• A)factories
• B)raw materials
• C)machinery
• D)capital

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Definitions:

Manufacturing Activity

The process or actions involved in converting raw materials into finished goods through labor and use of machinery.

Materials

refers to the raw items and components required in the production of goods, ranging from metals and plastics to textiles and electronics.

Assembly Department

A section in a manufacturing plant where parts are put together to create complete goods.

Weighted-Average Method

A cost flow assumption used in inventory valuation that averages out all costs of goods available for sale during the period.