The term "inventory profits" refers to profits made in the process of selling finished goods at prices higher than their cost of goods sold.

Question

Quizplus · Accepted Answer

This statement is true. Inventory profits are the profits made from selling finished goods at prices that are higher than their cost of goods sold. This is achieved by buying inventory at lower prices and selling it at higher prices.

The Term "Inventory Profits" Refers to Profits Made in the Process