Taxonomies are used as groupings for the custom post types or to set pick lists. It is good practice in museum collection management to use pre-defined terms for nomenclature where possible.

Taxonomy Post type Note
collection object An object belongs to one collection. Collections can be hierarchical.
location_type location The type of location eg building, wall, room
movable_unit_type movable_unit The type of unit eg cupboard, shirt stand.