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.

Question

Quizplus · Accepted Answer

Inventory investment refers to the money spent by firms on the purchase of raw materials, goods in process, and inventories of finished goods. The given options suggest various combinations of these elements, but only option D includes all three elements and thus best describes inventory investment.

Inventory Investment Consists of