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 ?
Ironically, most firms consider the inventories "scut work" for junior engineers, notes Jim Price of the Texas Natural Resource Conservation Commission in Austin.
Unless the inventories are reconciled, these policymakers will have to choose between them, and the decision for many will be largely a political one.
A CPA controller for a mid-sized retail operation developed a system that divides inventories into paid and unpaid portions, thereby allowing management to keep investment to a minimum.
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.
Accordingly, accounting adjustments to the results of physical inventories must be made.
446-1(c)(2)(i), which requires taxpayers with inventories to use the accrual method of accounting (absent the Service's approval).
In the latest in a long line of cases and rulings addressing bargain-purchase inventories, the Federal Circuit ruled that a manufacturer should have used acquisition cost to establish the base-year cost of bargain-priced inventory (La Crosse Footwear Inc.
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.