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During the current quarter, a firm produces consumer goods and adds some of those goods to its inventory rather than selling them. The value of the goods added to inventory is:____.

a. not included in the current quarter GDP.
b. included in the current quarter GDP as a statistical discrepancy.
c. included in the current quarter GDP as consumption.
d. included in the current quarter GDP as investment.

1 Answer

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Answer:

b) included in the current quarter GDP as investment

Step-by-step explanation:

We are informed from the question that

During the current quarter, a firm produces consumer goods and adds some of those goods to its inventory rather than selling them.

In this case, The value of the goods added to inventory is included in the current quarter GDP as investment, the GDP which measure the growth rate as far as economics is concerned in the firm. It should be noted that any Inventories in this year are use to be recorded in the same year GDP, it doesn't matter if they are yet to be sold out.

Inventory can be regarded as valuable asset in business owner to be able to know the amount that it's in their hand at that period of time.

types are Work-In-Progress, finished goods, maintainable aw well as Raw Materials. Better financial decisions can be made if the type of inventory is known.

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