Inventory Definition

Inventory is the list of raw materials and/or finished products that a business has on hand for manufacture or sale.

Inventory Extended Definition
Inventory includes all the goods you have in your business for sale or in storage. This includes:

• Raw materials used to create finished products
• Items in the production process
• Finished goods

Small business owners need a method for keeping track of their inventory for several reasons. Too much inventory can hurt cash flow or result in losses due to outdated stock. Too little inventory can result in lost sales when a customer cannot purchase a desired item.

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Last Updated By

Rachel Blakely-Gray | Apr 12, 2023