Which of the Following Cannot Be Considered as Independent Demand

question 25

Multiple Choice

Which of the following cannot be considered as independent demand items?

• A)wholesale and retail merchandise items
• B)maintenance,repair,and operating supplies at a manufacturing company
• C)maintenance,repair,and operating supplies at a service firm
• D)raw material items that become part of the final product at a manufacturing firm
• E)service industry items such as hospital supplies or office supplies for law firms

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Definitions:

Service Potential

Service potential refers to the capacity of an asset to provide goods or services that contribute to the future income of an organization.

Office Equipment

Tangible, long-term assets used in the operation of a business, such as computers, printers, and furniture, facilitating daily work tasks.

Land

A natural resource representing the earth's surface not including any structures; often considered a fixed asset in accounting.