The merchandise inventory in a merchandising business corresponds most closely to which of the following items in a manufacturing firm?
A)materials inventory
B)cost of goods available for sale
C)cost of goods manufactured
D)finished goods inventory

Question

Quizplus · Accepted Answer

The merchandise inventory in a merchandising business corresponds most closely to the finished goods inventory in a manufacturing firm. Both represent products that have been completed and are ready for sale to customers. Materials inventory (choice A) represents raw materials and supplies used in manufacturing, while cost of goods available for sale (choice B) and cost of goods manufactured (choice C) are specific to manufacturing firms and do not apply to merchandising businesses.

The Merchandise Inventory in a Merchandising Business Corresponds Most Closely