inventory

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Inventory

For companies: Raw materials, items available for sale or in the process of being made ready for sale. They can be individually valued by several different means, including cost or current market value, and collectively by FIFO (First in, first out), LIFO (Last in, first out) or other techniques. The lower value of alternatives is usually used to preclude overstating earnings and assets. For securities firms: Securities bought and held by a broker or dealer for their own account.

Inventory

The raw materials and the products made from them that a company possesses and intends to sell in short order. It also includes raw materials that are in the process of being made into a final product. Inventory is considered an asset on a balance sheet, but because it comes with costs (such as storage and spoilage), most companies seek to find a balance between having too much inventory, which comes with these costs, and too little, which could result in the company not filling orders for the product. Inventory may be accounted on a last-in-first-out or a first-in-first-out basis, which each has advantages and disadvantages. See also: Just-in-Time, Just-in-Case.

inventory

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.

inventory

the STOCKS of finished goods, WORK IN PROGRESS and raw materials held by businesses. See INVENTORY INVESTMENT, STOCKHOLDING COSTS.

inventory

the STOCKS of finished goods, WORK-IN-PROGRESS and raw materials held by businesses. See INVENTORY INVESTMENT.

inventory

(1) The total listings controlled by a real estate broker.(2) The total property for sale or lease in a defined area.(3) Property held for sale in the ordinary course of business or to be used in the manufacture of goods held for sale.(4) An itemized listing of personal property.

Inventory

For income tax purposes, inventory consists of items acquired for sale to customers in the regular course of a taxpayer's trade or business.
References in periodicals archive ?
most certification costs being treated as inventoriable production
Mixed service costs may be allocated to inventoriable costs using the direct-reallocation method or the step allocation method.
For example, differences may be caused by differences in inventoriable costs for financial reporting and tax purposes or by purchase business combinations.
The regulations list examples of indirect costs that are inventoriable to the extent they are properly allocable to produced property or property acquired for resale.
5 specifically addresses the utility industry, the same methodologies may be applicable to other industries, such as the retail industry, where mixed service costs need to be allocated between inventoriable goods and self-constructed assets.
263A unless it is appropriate to include them as an inventoriable overhead cost under Sec.
451-5(c) contains an exception for inventoriable goods that allows income from the sale of a gift card to be deferred until the end of the second year after the card is sold, provided certain conditions are met.
451-5(c)(1)(ii), dealing with the use of an estimated cost of goods sold amount where a taxpayer is required to include advance payments for inventoriable items in income.
An exception to this general rule exists for advance payments under an agreement (such as a gift card or gift certificate) to sell inventoriable goods.
263A must include in inventoriable costs the additional amounts required by Regs.