_____ inventory includes the items purchased from suppliers or produced internally to directly support production requirements.
A)Work-in-process
B)Finished-goods
C)MRO suppliers
D)Pipeline/in-transit
E)Raw material and semifinished items

Question

Quizplus · Accepted Answer

Raw material and semifinished items are the inputs needed for production and therefore directly support production requirements. Work-in-process and finished goods are products that are already in the production process or finished, respectively. MRO suppliers refer to maintenance, repair, and operating supplies, which are used to support production but not directly in the production of goods. Pipeline/in-transit inventory represents goods that are in transit to the company and do not directly support production requirements.

_____ Inventory Includes the Items Purchased from Suppliers or Produced