ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Finished goods are products that are complete and ready for sale. These may have been manufactured by the business itself, or purchased as a whole, finished product from a supplier.
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Items purchased as “raw materials” are used to produce finished goods. If the product is only partially completed, it’s called “work in process”. Once the product no longer requires processing and is ready to be consumed or distributed, it becomes “finished goods”.
Detailed explanation-2: -Finished goods are products that go through the production process, and are completed and ready for sale. Retailers typically refer to this inventory as merchandise.
Detailed explanation-3: -Finished goods are goods that have completed the manufacturing process but have not yet been sold or distributed to the end user.
There is 1 question to complete.