Question

Which of the following is a type of indirect inventory?

• A. Raw material inventory
• B. Anticipation inventory
• C. Work in process inventory
• D. Finished goods inventory

Answer 1

Answer:

B. Anticipation inventory

Indirect inventory refers to items that are not directly used in the production process but are essential for the operations. This includes products that help manage demand fluctuations or buffer against uncertainties, ensuring smooth production flow. It is different from raw materials, work in process, and finished goods inventory, which are directly involved in manufacturing