Inventory

Definition

Inventory. Stocks of goods held by the firm over a period of time. In the I-O accounts, inventory includes (1) products purchased for resale, generally held by wholesalers and retailers, (2) materials and supplies for use in the production of goods for sale or in the provision of a service, (3) products that are partly processed and that require further processing prior to sale (work in process), and (4) finished goods held for sale.