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A firm's inventory is best described as what?
AThe cash the firm holds at its bank
BThe machines installed on the factory floor
CThe orders customers have placed but not paid
DThe goods held for production or for sale
Answer & Solution
Correct answer: D. The goods held for production or for sale
1. Inventory is the supply of goods a firm holds.
2. Those goods are held either for use in production or for sale to customers.
3. Machines are equipment rather than inventory, and cash and unpaid orders are financial items rather than goods.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section Inventory Management: Not Just Parts_
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