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Q. What are the benefits as well as costs of holding inventory?

What is Inventory? What are the benefits as well as costs of holding inventory?

Ans. Inventory: - Every enterprise requires inventory for smooth running of its activities. The term inventory demotes to stock of goods kept for sale by the firm.

Types of Inventories:-

(A) In Trading Concern.

(B) In Manufacturing Concern.

(A) In Trading Concern: - In case of trading concerns it comprises only finished goods.

(B) Manufacturing Concern: - In case of mechanized concern inventory may perhaps include:-

(i) Inventory of Raw Materials

(ii) Inventory of Work-in-progress

(iii) Consumables

(iv) Inventory of Finished Goods

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9575706

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