Inventory Types Quiz

What are raw materials in inventory?

• Materials used directly in finished goods

• Materials used indirectly in overhead costs

• Materials used in maintenance and repair

• Materials used in work-in-process inventory

What is considered as work-in-process inventory?

• Finished goods ready for sale

• Materials used directly in finished goods

• Materials used indirectly in overhead costs

• Materials being worked on in production

Which inventory type includes products ready to be sold?

• Raw materials

• Work-in-process

• Finished goods

• Maintenance, Repair, and Overhaul

What does MRO inventory stand for?

• Maintenance, Repair, and Overhaul

• Materials used directly in finished goods

• Materials used indirectly in overhead costs

• Materials being worked on in production

Which of the following is an example of MRO inventory?

• Pre-packaged fruit salad

• Custom-built laptop

• Gloves for packaging

• Monogrammed bathrobe

What is the term for the process of converting raw materials into finished goods?

• Inventory Management

• Production

• Procurement

• Supply Chain Management

Which type of inventory is considered as goods that are in the process of being manufactured but are not yet finished?

• Raw materials

• Work-in-process

• Finished goods

• Maintenance, Repair, and Overhaul

Which of the following is not typically considered MRO inventory?

• Office supplies

• Production equipment

• Raw materials for production

• Cleaning supplies

Why is effective management of MRO inventory important?

• To reduce overhead costs

• To increase production speed

• To improve product quality

• All of the above

What is considered as raw materials inventory?

• Finished goods ready for sale

• Materials yet to be used in production

• Materials being worked on in production

• Materials used indirectly in overhead costs