Deere & Company .docx - Deere Company and CNH Global A...

This preview shows page 1 - 3 out of 3 pages.

Deere & Company and CNH Global A. Explain the risks and benefits associated with holding inventory. 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? In the finished goods inventory?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture