Which of the following types of organizations is most likely to have a raw materials inventory account?
A) A retailer.
B) A manufacturer.
C) A service provider.
D) A wholesaler.

Question

Quizplus · Accepted Answer

A raw materials inventory account is used to track the inventory of raw materials used in the manufacturing process. Therefore, a manufacturer is the type of organization that is most likely to have this type of inventory account. Retailers, service providers, and wholesalers typically do not use raw materials in their operations.

Which of the Following Types of Organizations Is Most Likely