Inventory - What do you mean by inventory?

Q: What do you mean by inventory?

Inventory is the array of finished goods or goods used in production held by a company. Inventory is classified as a current asset on a company's balance sheet, and it serves as a buffer between manufacturing and order fulfillment.

Answer

A company's inventory consists of all of the completed items and raw materials that are kept on hand. A company's inventory acts as a safety net between production and the actual fulfillment of customer orders; it is recorded as a current asset on the balance sheet.

Inventory - What do you mean by inventory?

Other useful ERP terms

AI generated suggestions