If a manufacturer ships merchandise to a retailer on consignment, the unsold merchandise should be included in the inventory of the
A) consignee
B) retailer
C) manufacturer
D) shipper

Question

Quizplus · Accepted Answer

The unsold merchandise should be included in the inventory of the manufacturer because, in a consignment arrangement, the consignor (manufacturer) retains ownership of the goods until they are sold.

If a Manufacturer Ships Merchandise to a Retailer on Consignment