Which of the Following Is NOT an Example of an Inventory

question 21

Multiple Choice

Which of the following is NOT an example of an inventory account a manufacturing firm might use?

• A) Work in process inventory.
• B) Finished goods inventory.
• C) Merchandise inventory.
• D)Raw materials inventory.

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Definitions:

Cost-Plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's unit cost.

Mark-Up Percentage

A fraction applied to the original purchase price to encompass both overhead expenses and profit.

Material Charge

The cost associated with acquiring materials that are directly used in the production of goods or services.

Direct Cost

Costs that are directly attributable to the production of goods or services, such as labor and materials.