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

Question

Quizplus · Accepted Answer

Inventory investment refers to the purchases of raw materials, goods in process, and inventories of finished goods. Choice E includes all of these items, making it the best option. Choices A, B, C, and D include some of the items, but not all of them, and therefore are not as comprehensive as choice E.

Inventory Investment Consists of