Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 19

What are the three types of inventory in a manufacturing firm?

Step 1 of 4

Inventory:

Inventory refers to the raw materials or goods maintained by the organization with the motive of selling the same. Inventory management is essential because inventory is required to be maintained at different locations within the facility or outside.

A manufacturer maintains different type of inventory at a given point of time. These are described as follows.