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Definition of Inventory

What is inventory?
What are the different types of inventory classifications?
Is inventory management important?

I just need the opinion on an expert in this area.

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Inventory is tangible goods that will be sold to others (sometimes after some time of manufacturing or conversion process). For a retailer, inventory is merchandise to be sold to consumers or other parties. To a manufacturer, inventory is made up of finished goods that can be sold to a retailer or other interested party, work-in-progress, which is raw materials combined with some level of labor and/or machine hours, but has not yet reached the finished materials stage and raw materials inventory. This is simply materials that have been purchased to be used in making saleable inventory, but no labor or alterations have been applied to change the form or content of the materials.

For example, if you are baking a cake, in a ...

Solution Summary

Definition of inventory, general overview of inventory carrying costs, expenses related to inventory and the major categories of inventory.