inventory investment & finance definition
- A
corporation’s stock of goods, such as raw materials, that are used to produce
final products.
- A
company’s goods that have been produced and are waiting to be sold. Inventory
is valued by a company using methods such as first in, first out (FIFO) or last
in, last out (LIFO).
See inventory in Wall Street Words
The amount of raw materials, work in process, and finished goods being held for sale at a given time. Diamonds held by a jeweler, engines owned by General Motors, and canned and frozen foods in a grocery store chain's warehouse are examples of inventory. Inventory is generally the least liquid item listed by a firm in the current asset account of its balance sheet. See also
beginning inventory,
ending inventory.
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