Which of the following statements regarding inventory is true?

a.Wholesalers and retailers incur a single type of cost, the purchase price, of the inventory they sell.

b.The inventory of a manufacturer takes three distinct formsdirect materials, direct labor, and finished goods.

c.It is not unusual for inventories to account for half the total assets of a manufacturer.

d.Wholesalers and retailers buy merchandise and transform the product before offering it to resale to customers.