Question

Which of the following is not an inventory?

• A. Machines
• B. Raw materials
• C. Finished products
• D. Consumables

Hint:

When considering inventory, remember that it includes goods for sale, raw materials, or consumables, but not capital assets like machines or equipment.

Answer 1

The Correct Option is A

In inventory management, machines are considered fixed assets, not inventory. Inventory refers to items that are held for sale or use in the production of goods, such as raw materials, finished products, and consumables. Machines are used in the manufacturing process but are not part of the inventory itself because they are capital goods intended to last for a long time.