Finance: What is inventory?

What is inventory? From a financial perspective, inventory usually consists of A) raw materials for manufacturing products, B) products in the midst of manufacture or assembly, and C) finished goods to either be shipped for sale or if already in possession of vendors, merchandise to be sold. Inventory can also refer to any list of supplies or items that are used by personnel at a place of business.

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Transcript

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the cars are inventory the loads of nose hair trimmers

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sitting on the shelves at the well appointed nostril fine

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store best nostril trimming store in the world Yet their

00:29

inventory albeit kind of gross ish inventory especially after use

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the four thousand yards of denim cloth sitting in the

00:38

weaving factory waiting for thirteen year old girls in thailand

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toe weave it all together to make levi's for the

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gap Yep that cloth is inventory It isn't finished inventory

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It's just a work in process not yet ready for

00:51

prime time or a prime thigh or whatever But it's

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an asset for the company who owns it and it

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is held as inventory on the balance sheet Work in

01:00

process right there at the balance sheet right there Okay

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And when that inventory is sold and turned into revenues

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it'll just become part of the expenses line on the

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income statement usually has cost of goods sold or caw

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Gse that's What people in the accounting bids say Cocks

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thie Inventory is a good but inventory is always good

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Of course as many a customer has learned after taking

01:25

a hefty shock straight to the hunger And that hurts