Future Business Leaders of America (FBLA) Agribusiness Practice Test

Which of the following is considered consumable supplies?

1. Machinery

2. Office furniture

3. Raw materials used in production

4. Real estate investments

The correct answer is: Raw materials used in production

Consumable supplies refer to items that are used up or depleted in the course of business operations and are typically necessary for production processes, day-to-day functioning, or providing services. Raw materials used in production fall into this category because they are integral to creating finished goods or products. These materials are consumed in the manufacturing process and are not intended to be reused directly once they have been transformed into another product. In contrast, machinery, office furniture, and real estate investments are not categorized as consumable supplies. Machinery and office furniture are durable goods designed to last for a long time and can often be used multiple times over many years. Real estate investments represent property holdings, which are typically long-term assets rather than items that are consumed in the normal course of operations. Thus, raw materials as consumable supplies play a vital role in the operational workflow of a business, being fundamental to production processes and directly impacting business output.