Discussion
Which one of the following is NOT a form of inventory?
Answer: D
The item that is NOT inventory is CNC milling machines.
Inventory is stock held to be converted into, or sold as, product: raw materials waiting to be processed, work-in-process partly through production, and finished goods awaiting sale. All three appear on the books as current assets.
CNC milling machines are the equipment that does the processing. They are capital goods (fixed assets) used over many years and are not consumed in or sold as the product, so they are not inventory. (A machine-tool maker's unsold machines would be its finished goods, but the question is about the machines as production equipment.)
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