For a ________, inventory consists of freight-in and the cost of the product which is to be resold.
A)service company
B)manufacturing company
C)merchandising company
D)all of these companies

Question

Quizplus · Accepted Answer

Merchandising companies purchase products for resale, and therefore their inventory consists of the cost of the product purchased and any associated freight costs. Service companies do not typically have inventory, and manufacturing companies would also include the cost of raw materials and production expenses in their inventory.

For a ________, Inventory Consists of Freight-In and the Cost