A job shop would be most likely to hold which type of inventory?
A) Finished goods
B) Component parts
C) Raw materials
D) Work-in-process

Question

Quizplus · Accepted Answer

A job shop typically produces items to order, so they would be most likely to hold work-in-process inventory. Work-in-process inventory refers to items that are in the process of being manufactured but are not yet complete. Holding finished goods inventory would not be practical since each order is likely to be unique and require different components and specifications. Component parts and raw materials may be purchased as needed for each order, rather than being held in inventory.

A Job Shop Would Be Most Likely to Hold Which