ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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raw materials, finished products that are held at location in the supply chain.
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raw materials, component parts, work-in-process, or finished products that are held at a location in the supply chain.
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raw material, components parts or finished products that are held at a location in the supply chain.
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None of the above
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Detailed explanation-1: -Inventory is the raw materials used to produce goods as well as the goods that are available for sale. It is classified as a current asset on a company’s balance sheet. The three types of inventory include raw materials, work-in-progress, and finished goods.
Detailed explanation-2: -Work In Progress (WIP): WIP inventory refers to items in production and includes raw materials or components, labor, overhead and even packing materials. Finished Goods: Finished goods are items that are ready to sell.
Detailed explanation-3: -When a company uses raw materials inventory in production, it transfers them from the raw materials inventory to the work-in-process inventory. When a company completes its work-in-process items, it adds the finished items to the finished goods inventory, making them ready for sale.
Detailed explanation-4: -The four types of inventory are raw materials, work-in-progress (WIP), finished goods, and maintenance, repair, and overhaul (MRO) inventory.