Case Assignment - All Students ``.docx - Deere Company and CNH Global N.V Inventory Complete parts A through D A Explain the risks and benefits

Case Assignment - All Students ``.docx - Deere Company and...

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Deere & Company and CNH Global N.V.- Inventory. Complete parts A through D A. Explain the risks and benefits associated with holding inventory. Inventory is the stock of materials in hand which may be raw materials, work-in-progress and finished stock. It has to be held for manufacturing and processing of the final product. Risks of holding inventory are: 1. Risk damage to inventory. 2. Risk of a decrease in quality. 3. High holding cost of inventory leading to loss or low profits. Benefits of holding inventory are: 1. In times of rising prices impact of the same can be avoided. 2. Shortage or stock-out is avoided and production and sales continue without interruption. 3. In some cases, holding inventory can increase the value of the product. B. Note 15 reveals that the balance sheet inventory amount consists of three types of inventory. What types of costs do you expect to be in the raw materials inventory? In the work-in-process inventory? Inthe finished goods inventory?

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