Inventory

Definition

Inventory. Stocks of goods held by the firm over a period of time.

In the I-O accounts, inventory includes:

• products purchased for resale, generally held by wholesalers and retailers
• materials and supplies for use in the production of goods for sale or in the provision of a service
• products that are partly processed and that require further processing prior to sale (work in process), and
• finished goods held for sale.