Goods a company acquires to use in making products are called:
A) Cost of goods sold.
B) Raw materials inventory.
C) Finished goods inventory.
D) Goods in process inventory.
E) Conversion costs.

Question

Quizplus · Accepted Answer

Raw materials inventory refers to the goods a company acquires to use in making products. Cost of goods sold refers to the cost of goods that have already been sold to customers. Finished goods inventory refers to completed products that have not yet been sold. Goods in process inventory refers to partially completed products. Conversion costs refer to the costs incurred to convert raw materials into finished products.

Goods a Company Acquires to Use in Making Products Are