Inventory Should Have a Higher Required Return Than Cash Because

question 92

True/False

Inventory should have a higher required return than cash because it is less liquid.

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Definitions:

Inventory Value

The total cost associated with the goods a company intends to sell, calculated at either the cost to produce/buy them or their current market value.

Lower Of Cost

An accounting principle that states inventory should be reported at the lower of its cost or market value.

Ending Inventory

Ending inventory is the value of goods available for sale at the end of an accounting period.

Inventory Total

The aggregate value of a company's raw materials, work in process inventory, and finished goods.