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 ?
readily distinguishable from the inventoriable costs of a manufacturer.
The Tax Court ruled that the royalty payment at issue related to a manufacturing procedure and that royalty payments made for a patented manufacturing process are inventoriable costs under Sec.
1.451-5(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.
Contract notice: Provision of computer equipment not inventoriable, For the organs of the administration of justice of the province of santa cruz de tenerife
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.
Tenders are invited for framework agreement for the supply of diverse office and computer equipment not inventoriable.
263A must include in inventoriable costs the additional amounts required by Regs.
Prior information notice without call for competition: Provision of computer equipment not inventoriable for the organs of the Administration of Justice of the province of Santa Cruz de Tenerife
The regulations' simplified methods are useful in computing the costs that are inventoriable and how much of these costs are properly includible in ending inventory.
263A to inventoriable items treated as nonincidental materials and supplies, which are deductible in the later of the year the taxpayer (1) provides the items to a customer or (2) actually pays for the goods.
Taxpayers with inventory wanting to take advantage of Notice 2001-76 treat inventoriable items, incidental to providing services, as not incidental materials and supplies under Regs.
Merchandise bought for resale is not inventoriable unless the sale is intended for profit.(4) However, in Thompson Electric, Inc.,(5) a taxpayer could not avoid recording inventory of electrical supplies on hand consumed in its provision of contracting services.