Identifying Your Inventory  

Most people think of inventory as goods ready for purchase, probably because we are constantly assaulted by ads proclaiming “ sale on all inventory” and occasionally disappointed when clerk tells us that something we want to buy is “ no longer in inventory”. But , as we’ve noted , inventory is quite a bit more than that.

• Raw materials and supplies used to make products.
• Goods currently in the process of completion
• Completed goods ready for the customer
  

Depending on your type of company, of course, you might have all three or only one of these types. Inventory may include items held for sale as finished goods, goods in production, or raw materials and supplies to be used in the production process.