____ represents the funds committed to operating a business,including the purchase and holding of inventory.
A) Pipeline inventory
B) WIP
C) MRO
D) Working capital
E) None of these choices.

Question

Quizplus · Accepted Answer

Working capital represents the funds committed to operating a business, including the purchase and holding of inventory, as well as the payment of salaries, rent, and other ongoing expenses. Pipeline inventory refers to inventory that is in transit between different stages of the supply chain, while WIP (work-in-progress) refers to inventory that is in the process of being transformed into finished goods. MRO (maintenance, repair, and operating supplies) refers to the inventory of supplies and equipment needed to keep a business running smoothly. None of these options fully capture the concept of funds committed to operating a business. Therefore, the best choice is D) Working capital.

____ Represents the Funds Committed to Operating a Business,including the Purchase