_____ is the change in stock of finished goods, semi-finished goods and raw materials:
_____ is the change in stock of finished goods, semi-finished goods and raw materials:
(a) Net Investment
(b) Inventory Investment
(c) Gross Investment
(d) None of these
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Ans – (b)
Explanation:-
Change in stock is also called change in Inventory Investment. It includes three components
- Change in stock of finished goods
- Change in semi-finished goods
- Change in raw-materials
Change in inventory investment = Change in stock of finished goods + Change in stock of semi-finished goods + Change in stock of raw materials.
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