Which of the following types of inventory usually is not held by a manufacturing business?
A) Merchandise inventory.
B) Raw material inventory.
C) Finished goods inventory.
D) Work in process inventory.

Question

Quizplus · Accepted Answer

Merchandise inventory is typically held by a retail or wholesale business, which buys finished goods from manufacturers and resells them. Manufacturing businesses, on the other hand, hold raw material inventory, work in process inventory, and finished goods inventory as they transform raw materials into finished products.

Which of the Following Types of Inventory Usually Is Not