Inventory refers to the goods or materials that a business holds for the ultimate goal of resale, production, or utilization. It can be classified into three categories:

1. Raw Materials: These are the basic components that are used in the production process to create finished goods. For example, a furniture manufacturer's raw materials might include wood, nails, glue, and paint.

2. Work-in-Progress (WIP): These are partially completed goods that are still in the production process. Using the same example, a work-in-progress might be a chair that has been assembled but not yet painted.

3. Finished Goods: These are the final products that are ready for sale. In our example, a finished good would be a completed, painted chair that is ready to be sold to a customer.

Inventory can also refer to services rendered to customers. In a service-based business, inventory might include the hours of labor that have been provided but not yet billed to the client.

Question

Inventory refers to the goods or materials that a business holds for the ultimate goal of resale, production, or utilization. It can be classified into three categories:

1. Raw Materials: These are the basic components that are used in the production process to create finished goods. For example, a furniture manufacturer's raw materials might include wood, nails, glue, and paint.

2. Work-in-Progress (WIP): These are partially completed goods that are still in the production process. Using the same example, a work-in-progress might be a chair that has been assembled but not yet painted.

3. Finished Goods: These are the final products that are ready for sale. In our example, a finished good would be a completed, painted chair that is ready to be sold to a customer.

Inventory can also refer to services rendered to customers. In a service-based business, inventory might include the hours of labor that have been provided but not yet billed to the client.

Knowee AI · Accepted Answer

Inventory refers to the goods or materials that a business holds for the ultimate goal of resale, production, or utilization. It can be classified into three categories:

1. Raw Materials: These are the basic components that are used in the production process to create finished goods. For example, a furniture manufacturer's raw materials might include wood, nails, glue, and paint.

2. Work-in-Progress (WIP): These are partially completed goods that are still in the production process. Using the same example, a work-in-progress might be a chair that has been assembled but not yet painted.

3. Finished Goods: These are the final products that are ready for sale. In our example, a finished good would be a completed, painted chair that is ready to be sold to a customer.

Inventory can also refer to services rendered to customers. In a service-based business, inventory might include the hours of labor that have been provided but not yet billed to the client.

What is inventory?Raw materials, finished goods and work-in-progress available for sale Services rendered to customers

Question

What is inventory?

Solution

Similar Questions

Upgrade your grade with Knowee