Which of the Following Types of Inventories Is Controlled by Shop

question 5

Multiple Choice

Which of the following types of inventories is controlled by shop floor control systems?

• A) Raw materials inventory
• B) Work-in-process inventory
• C) Finished goods inventory
• D) In-transit inventory
• E) Procurements inventory

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Definitions:

Receivables

Money that is owed to a company by its customers for goods or services provided on credit, represented as assets on the balance sheet.

Carrying Cost of Inventory

Expenses related to holding and maintaining unsold inventory, including storage, insurance, taxes, and opportunity costs.

Storage Expenses

are costs associated with storing inventory or goods, including warehousing fees, handling charges, and costs related to inventory maintenance.

Insurance Cost

The expense incurred to provide an insurance coverage, encompassing premiums, deductibles, and any other charges related to maintaining the policy.