question archive The inventory of a retail company is comparable to which type of inventory of a manufacturing company? a

The inventory of a retail company is comparable to which type of inventory of a manufacturing company? a

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The inventory of a retail company is comparable to which type of inventory of a manufacturing company?

a. Finished goods

b. Work in process

c. Supplies

d. Raw materials

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The correct answer is option a. Finished goods.

Under manufacturing company, the goods that are available for sale are termed finished goods. Under the retail company, the finished goods are called merchandise inventory. Hence, finished goods is a type of inventory that is comparable for both retail and manufacturing companies as they are of the same type. Finished goods are end products.