Which term refers to inventory used to support general operations and maintenance, such as spare parts and consumables?

Which term refers to inventory used to support general operations and maintenance, such as spare parts and consumables?

• A. MRO supplies
• B. Direct materials
• C. Finished goods
• D. Work-in-process

Answer: (A)

MRO supplies are inventory kept to support daily operations and maintenance. They include spare parts, lubricants, tools, cleaning products, and other consumables that keep equipment and facilities running, but they aren’t part of the finished product or the materials that become part of it. Direct materials are the raw materials and components that are transformed into the final product. Finished goods are the completed products ready for sale. Work-in-process are items that are still undergoing production. Because spare parts and consumables are not tied to a specific batch of products and their purpose is to support ongoing operations rather than to become part of the product, the best term is MRO supplies.

MRO supplies are inventory kept to support daily operations and maintenance. They include spare parts, lubricants, tools, cleaning products, and other consumables that keep equipment and facilities running, but they aren’t part of the finished product or the materials that become part of it.

Direct materials are the raw materials and components that are transformed into the final product. Finished goods are the completed products ready for sale. Work-in-process are items that are still undergoing production. Because spare parts and consumables are not tied to a specific batch of products and their purpose is to support ongoing operations rather than to become part of the product, the best term is MRO supplies.