INVENTORY

Inventory is a current asset whose ending balance should report the cost of a merchandiser's products awaiting for sale. The inventory of a manufacturer organisation should report the industry cost of its raw materials, work-in-process, and finished goods of invetory. The cost of inventory should be  included all their costs necessary to acquire the items and to get them ready for sale in the market.

The raw materials, work-in-process  and finally finished goods of inventry that are considered to be the portion of a business's assets that are ready for sale. Inventory represents that it is one kind of  most important assets that most businesses possess, because the turnover of inventory  items represent one of the initially sources of revenue generation and subsequent earnings for the company's owners.


                                            

Usually high possessing amount of inventory for long  time periods is not  good for a business because of inventory storage, obsolescence and spoilage costs. Althaow,  too little possessing inventory isn't good for business, because the business  may run the risk of losing out on potential sales and potential market share.

Inventory management , such as a just-in-time inventory system, can be helped minimize  costs because goods are created or received as inventory only when they are needed. When inventory items are acquired or produced at varying costs prise, the company will need to be made an assumption on how to flow the changing costs.

The inventory item is-
a complete listing of merchandise or stock on hand, wip, raw materials, finished goods of inventory on hand, etc., made it each year by a business concern.

the objective of items represented on such a list, as a merchant's stock of goods in inventory.

the aggregate value of a inventory of goods.

raw material from the inventory time of its receipt at an organisational plant for manufacturing purposes to the time when sold.

a detailed, often descriptive, list of articles, giving the code number, quantity value, and value of each item; catalog.

a formal list of movables, as of a merchant's inventory of goods.

a formal list of the property of a person.

a tally of one's personality traits, aptitudes, skills. for use in counseling and guidline.

a catalog of natural resources, especially a count or estimate of wildlife and game in a particular area.

the act of making a catalog or detailed listing.
verb , inventoried, inventorying.



Cost of inventoey is calculated as:
Opening inventory+purchase-closing inventory.
So we can say, goods might be unsold at the end
of an accounting period and so still be held in
 inventory.