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Commerce · Q305

Costing

Graduate and Post Graduate · Commerce · question 305

Q305

Inventory of final goods that are not yet sold is called

A.
finished goods inventory
Answer
B.
indirect material inventory
C.
direct materials inventory
D.
work in process inventory

Answer: Option A

Solution

Answer: Option A
Solution:
Inventory of final goods that are not yet sold is called finished goods inventory. Finished goods inventory refers to the number of manufactured products in stock that are available for customers to purchase.