Asked by Kathleen Julito on May 22, 2024
Verified
Which of the following types of inventory will be held by a retail company?
A) Supplies
B) Finished goods
C) Work in process
D) Raw materials
Retail Company
A business entity that sells goods directly to consumers, typically through various channels such as physical stores or online platforms.
Finished Goods
Products that have completed the manufacturing process and are ready for sale to customers.
Work in Process
Inventory that includes goods in production but not yet completed, a stage between raw materials and finished goods.
- Elucidate the behaviors in management shaped by accounting methodologies, especially concerning inventory management, accounts receivable, and reward incentives.
Verified Answer
JL
Joseph LodovichettiMay 25, 2024
Final Answer :
B
Explanation :
A retail company will hold finished goods inventory, which are products that are ready to be sold to customers. They will not hold supplies, work in process or raw materials as they do not manufacture the products themselves.
Learning Objectives
- Elucidate the behaviors in management shaped by accounting methodologies, especially concerning inventory management, accounts receivable, and reward incentives.