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 consists of three components: inventories of finished goods, goods in process, and raw materials. Construction expenditures and office machinery purchases are not considered part of inventory investment. Used finished goods are not part of inventory investment either.

Inventory Investment Consists of