CPIM Practice Exam

What type of inventory does not end up in the final product but is essential for production?

1. Raw materials

2. Work-in-process inventory

3. Finished goods

4. Maintenance, repair, and operating supplies

The correct answer is: Maintenance, repair, and operating supplies

The correct choice is maintenance, repair, and operating supplies, as these items are crucial for the production process but do not become part of the final product. These supplies support the overall operations, ensuring that machinery and equipment are maintained, repaired, and operational. Whereas raw materials are the basic components that are transformed into the final product and work-in-process inventory reflects products that are in the stages of production but not yet finished, maintenance, repair, and operating supplies serve a different role. They facilitate the production process, helping to prevent downtime and ensure smooth operations. Finished goods inventory represents completed products ready for sale but does not relate to the production process itself in the same supportive manner.