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Question

The stock of unsold finished goods, or semi-finished goods, or raw materials which a firm carries from one year to the next is called __________.


A
surplus
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B
inventory
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C
both A and B
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D
none of the above
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Solution

The correct option is B inventory

The stock of unsold finished goods, or semi-finished goods, or raw materials which a firm carries from one year to the next is called inventory

Inventory is a stock variable. It may have a value at the beginning of the year; it may have a higher value at the end of the year


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