Which of the following statements best explains the term inventory?
A) It is the amount and number of raw materials, parts, and finished products that a company has in its possession.
B) It is the amount and number of products or services that a company has dispatched to the market in the past one year.
C) It is the capability of a company to produce a set number of products per month.
D) It is the capability of a company to buy raw materials or parts for the production of finished products.

Question

Which of the following statements best explains the term inventory? 
A) ​It is the amount and number of raw materials, parts, and finished products that a company has in its possession. 
B) ​It is the amount and number of products or services that a company has dispatched to the market in the past one year. 
C) ​It is the capability of a company to produce a set number of products per month. 
D) ​It is the capability of a company to buy raw materials or parts for the production of finished products.

Quizplus · Accepted Answer

Inventory refers to the amount and number of raw materials, parts, and finished products that a company has in its possession. It is a crucial factor in a company's supply chain management and can impact its profitability and ability to meet customer demand. Option B, C, and D do not accurately define the term inventory.

Which of the Following Statements Best Explains the Term Inventory