ECONOMICS

Detailed explanation-1: -2) Work-in-progress (WIP) inventory These are unfinished items or components currently in-production, but not yet ready for sale.

Detailed explanation-2: -There are four main types of inventory: raw materials/components, WIP, finished goods and MRO.

Detailed explanation-3: -FIFO stands for “first in, first out” and assumes the first items entered into your inventory are the first ones you sell. LIFO, also known as “last in, first out, ” assumes the most recent items entered into your inventory will be the ones to sell first.

Detailed explanation-4: -Non-stock items are products not physically kept on hand for a company to sell. They could include dropship items from a third-party vendor, service fees such as website design or digital products.