When new cars come off the assembly line at Bright Star Auto Plant,they are parked on a lot in preparation for shipping to dealerships across the country.These cars are examples of what type of inventory?
A)Customer goods inventory
B)Service inventory
C)Raw materials inventory
D)Work-in-process inventory
E)Finished-goods inventory

Question

Quizplus · Accepted Answer

The new cars that have been produced and are awaiting shipment to dealerships are considered Finished-goods inventory. This is inventory that has completed the manufacturing process, has passed final inspection and is ready for sale to customers.

When New Cars Come Off the Assembly Line at Bright