The equivalent of finished goods inventory for a merchandising firm is referred to as
A) purchases.
B) cost of goods purchased.
C) inventory.
D) raw materials inventory.

Question

Quizplus · Accepted Answer

The equivalent of finished goods inventory for a merchandising firm would be its inventory of products ready to sell. The other options listed are more relevant to a manufacturing firm. Purchases would refer to the buying of materials to make products, cost of goods purchased would represent the cost of those materials, and raw materials inventory would be the materials waiting to be used in production.

The Equivalent of Finished Goods Inventory for a Merchandising Firm