Describe the three types of items: Inventory items, Non-inventory items, and Services. Provide examples of each.
What will be an ideal response?
Inventory items are goods that a business purchases, holds as inventory, and then resells to customers. For example, Rock Castle would hold these types of items in its inventory: doors, door knobs, plywood, etc.
Non-inventory items are purchases for a specific job, for example a custom countertop; items purchased and used by the company instead of reselling to customers, for example, copy paper, pens, and coffee; and items purchased and resold to customers, but the quantity does not need to be tracked, for example, Rock Castle might include roofing nails in this category.
Service items can be services that are purchased or sold. For example, service items include: services you buy from vendors, such as cleaning services and services you sell to customers, such as installation labor.
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