Inventory investment consists of
A) construction expenditures, raw materials, and inventories of finished goods.
B) goods in process, raw materials, and purchases of office machinery.
C) raw materials, goods in process, and construction expenditures.
D) inventories of finished goods, goods in process, and raw materials.
E) used finished goods.

Question

Quizplus · Accepted Answer

Inventory investment includes three types of inventories: finished goods, goods in process, and raw materials. Therefore, option D is the correct answer. Option A includes construction expenditures, which are not a part of inventory investment, and option B includes office machinery, which is not considered an inventory item. Option C is similar to option D but includes construction expenditures, which are not considered inventory investment. Option E mentions used finished goods, which is not a type of inventory investment.

Inventory Investment Consists of