Finished goods inventory for a manufacturing company is equivalent to merchandise inventory for a merchandising company.

Question

Quizplus · Accepted Answer

Finished goods inventory for a manufacturing company refers to the completed products that are ready to be sold, while merchandise inventory for a merchandising company refers to the products that have been purchased for resale. In both cases, the inventory represents the goods that the company has available to sell to customers.

Finished Goods Inventory for a Manufacturing Company Is Equivalent to Merchandise