inventory should not be included in this calculation
<h3>What is
inventory?</h3>
Inventory, also known as stock, refers to the goods and materials that a company keeps for the purpose of resale, production, or use. Inventory management is primarily concerned with specifying the shape and placement of stocked goods.
There are four types of inventory: raw materials/components, work in progress (WIP), finished goods, and maintenance and repair (MRO).
Inventory valuation methods include FIFO (First In, First Out), LIFO (Last In, First Out), and WAC (Weighted Average Cost).
Inventory is the inventory of goods that your small business has for sale or in storage. The inventory of your small business includes raw materials used to make finished goods, items in the manufacturing process, and finished goods.
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