Final answer:
Both merchandising and manufacturing companies normally have multiple inventory types, which can include raw materials, work-in-progress, and finished goods.
Step-by-step explanation:
Both merchandising and manufacturing companies normally have multiple inventory.
Inventory is the term used to describe the goods that a business has produced but has not yet sold to consumers. It includes items that are still sitting in warehouses and on shelves.
In a merchandising company, the inventory consists of finished goods that are ready for sale. Examples of merchandising companies include retail stores and wholesalers.
In a manufacturing company, the inventory consists of raw materials, work-in-progress, and finished goods. Raw materials are the items that are used to produce goods, work-in-progress is the partially completed goods, and finished goods are the fully completed goods that are ready for sale.
Therefore, both merchandising and manufacturing companies typically have multiple inventory types.