Which inventory category includes items used to support production but not part of finished goods?

• A. Raw Materials
• B. Work-in-Process
• C. MRO
• D. Finished Goods

Answer: (C)

Classifying inventory by its role in production helps you see why some items support the process without becoming part of the final product. Maintenance, Repair, and Operations (MRO) covers items that keep production running—things like lubricants, tools, safety gear, cleaning supplies, and spare parts—but these are not incorporated into the finished goods. Raw materials are the inputs that are transformed into products, work-in-progress are items currently undergoing processing, and finished goods are the completed products ready for sale. So, items used to support production but not part of the finished product belong to MRO.