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It is costly to hold money because
Finished Goods Inventory
The stock of completed products ready for sale but not yet sold, held by a manufacturing company.
Budgeted Production
The planned volume of goods a company aims to manufacture over a certain period, often used for planning and control purposes.
Raw Materials Inventory
The total cost of all the raw materials that are used in production but have not yet been processed into finished goods.
Raw Materials Purchases
The total cost a company incurs for acquiring the raw materials needed in the production process.
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