5 Inventory accounting is most complex in: Manufacturing companies Service companies Wholesale companies Merchandising companies

The complexity of inventory accounting varies across different types of companies due to the nature of their operations and inventory management needs. Here's a brief overview of each type: 1. **Manufacturing Companies**: These companies deal with raw materials, work-in-progress, and finished goods. They must track the costs associated with each stage of production, which can include labor, overhead, and material costs. This multi-layered approach makes inventory accounting quite complex. 2. **Service Companies**: These companies typically do not hold physical inventory, as they provide services rather than goods. Therefore, inventory accounting is generally less complex in this sector. 3. **Wholesale Companies**: Wholesalers buy goods in bulk and sell them to retailers. While they do manage inventory, the complexity is usually lower than that of manufacturing companies since they deal primarily with finished goods. 4. **Merchandising Companies**: These companies purchase finished goods for resale. Their inventory accounting is more straightforward than that of manufacturing companies but can still be complex depending on the variety and volume of products. Given this analysis, the answer to the question is: **Manufacturing companies** have the most complex inventory accounting due to the need to track multiple types of inventory and associated costs throughout the production process.