Kinds And Types of Inventories
Inventories can be classified into five major categories.
A. Raw Material
It is basic and important part of inventories. These are goods which have not yet been committed to production in a manufacturing business concern.
B. Work in Progress
These include those materials which have been committed to production process but have not yet been completed.
C. Consumables
These are the materials which are needed to smooth running of the manufacturing process.
D. Finished Goods
These are the final output of the production process of the business concern. It is ready for consumers.
E. Spares
It is also a part of inventories, which includes small spares and parts.
Inventories can be classified into five major categories.
A. Raw Material
It is basic and important part of inventories. These are goods which have not yet been committed to production in a manufacturing business concern.
B. Work in Progress
These include those materials which have been committed to production process but have not yet been completed.
[Post Image Courtesy of Artur84 at FreeDigitalPhotos.net]
C. Consumables
These are the materials which are needed to smooth running of the manufacturing process.
D. Finished Goods
These are the final output of the production process of the business concern. It is ready for consumers.
E. Spares
It is also a part of inventories, which includes small spares and parts.
Types of Inventories
![Types of Inventories]()
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Monday, July 31, 2017
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