Which type of company has three categories of inventory?
A)A manufacturing company
B)A merchandising company
C)A service company
D)All of these companies

Question

Quizplus · Accepted Answer

A manufacturing company typically has three categories of inventory: raw materials, work in progress, and finished goods. Raw materials are the inputs used in the production process, work in progress refers to partially completed products, and finished goods are completed products ready for sale. Merchandising companies have only one category of inventory: finished goods. Service companies do not typically carry inventory.

Which Type of Company Has Three Categories of Inventory