A company has to keep an inventory of raw material to analyze the production and safeguard the excessive use. Raw MaterialĪny goods, materials, or components used to manufacture a product are the raw material. Usually, there are 4 types o inventories: raw materials, Work in Progress (WIP), Finished Goods, and MRO (Maintenance, Repair, and Operations goods). ![]() Excess inventory is a burden for any business. It is better to have a balanced inventory. For most businesses, inventory is a valuable asset. Wholesale, retail, manufacturing, reselling, etc. Inventory applies to all types of businesses. Under Accounting, inventory is a current asset. Inventory is the process of quantifying and measuring products or raw material used for business Inventory is an accounting phrase that refers to describing all goods at various stages of manufacturing or in-hand stock. ![]()
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