Question

Which of the following is not an example of inventory carried to satisfy independent demand?

a) Spare parts
b) Finished product
c) Raw materials
d) All of the above satisfy independent demand

Answer 1

Raw materials is not an example of inventory carried to satisfy independent demand.

Step-by-step explanation:

An inventory carried to satisfy independent demand refers to the stock of goods or materials that are directly demanded by customers, as opposed to being used in the production process. From the given options, raw materials is not an example of inventory carried to satisfy independent demand. Raw materials are typically used to produce finished goods, which are then sold to customers.