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 ?
The increasing use of VOC inventory data in computer models that simulate air quality "presents some of the most severe requirements on the accuracy of these inventories," points out Glen Cass of the California Institute of Technology in Pasadena.
Despite the discrepancy, the inventories still provide much better information about the remaining ecological old-growth than was available a year ago when the old-growth debate began to heat up in Congress.
For example, suppose a company starts the month with $1,200,000 in inventory and an inventory accounts payable balance of $500,000, indicating inventories of &700,000 that have been paid for.
Physical inventories at the beginning and end of the year are not taken; and
It not only applies to taxpayers that want to change from the accrual to the cash method, but also to those who want to change from the cash method without inventories to the cash method with inventories.
446(b) and 471 to except small taxpayers from using inventories and to allow them to use the cash method.
Indeed, if it is the first year a taxpayer has inventories, the adoption of an inventory method is not subject to the procedures governing accounting method changes, as this does not involve a "change" in method of accounting; see Regs.
472(b)(2) of the Code that LIFO inventories be stated at cost," and that replacement cost may be more analogous to the market value used in the lower of cost or market inventory method.
The new component of this process is having the cleansed, harmonized data through Vision Chain in order to model demand, supply and inventories all the way to the retail shelf.
Assuming a relatively constant level of inventories and no increasing costs, the Claims Court stated that there should be little difference between the LIFO value of the opening inventory (comprising bargain goods at FMV) and that of the dosing inventory (consisting of subsequently purchased goods valued at current cost).
The Xtivity Inventory Optimizer (xIO(TM)) is the only service on the market proven to optimize MRO inventories - while offering unparalleled efficiencies and controls in corporate governance at the Operations level.
471 (a) states that, when inventories are necessary, they must be taken in a manner conforming "as nearly as may be to [1] the best accounting practice in the trade or business and [2] clearly reflecting the income.