Inventory may not be immediately ready for sale. In other words, these goods and materials serve no other purpose in the business except to be sold to customers for a profit. inventory definition.

They are not used in the produce things or promote the business. The inventory of a manufacturer should report the cost of its raw materials, work-in-process, and finished goods. an accounting term that refers to goods that are in various stages of being made ready for sale Inventory accounting is the body of accounting that deals with valuing and accounting for changes in inventoried assets. The cost of inventory should include all costs necessary to acquire the items and to get them ready for sale. Definition: Inventory, often called merchandise, refers to goods and materials that a business holds for sale to customers in the near future. A current asset whose ending balance should report the cost of a merchandiser's products awaiting to be sold.

Inventory is an asset that is intended to be sold in the ordinary course of business. Inventory represents one of the … Inventory is the term for the goods available for sale and raw materials used to produce goods available for sale. Inventory items can fall into one of the following three categories: Held for sale in the ordinary course of business; or; That is in the process of being produced for sale; or