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Inventory
When discussing the components of a company's inventory, we often refer to raw materials, work in process, and finished goods. These refer to the various stages of production in which inventory can be found. Raw materials are the basic materials used in production, while work in process includes items that are currently being transformed into finished goods. Finished goods are products that have completed the production process but are yet to be shipped to customers. These three categories are essential to understanding a company's inventory and its overall financial health.
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