Limitless Builders is a construction plant, wherein small aluminum rods are sheared, hammered, welded, and molded to form nuts and bolts that are used as fasteners. The nuts and bolts produced in this process are referred to as _____.
A) raw material inventories
B) component parts inventories
C) average aggregate inventories
D) work-in-process inventories

Question

Quizplus · Accepted Answer

The nuts and bolts produced in this process are considered component parts inventories since they are used as fasteners in the construction process. Raw material inventories would refer to the aluminum rods before they are processed, work-in-process inventories would refer to partially completed nuts and bolts still undergoing production, and average aggregate inventories is not a relevant term in this context.

Limitless Builders Is a Construction Plant, Wherein Small Aluminum Rods