What Is Inventory?

Definition

Inventory is the amount of goods that are available for sale. Some types of inventory include raw materials, finished goods, and work-in-progress. Inventory can be used as a measure of supply and demand in economics. The term is also applied to stocks of products held by businesses or private individuals. In business, inventory is generally considered any asset that has been purchased on credit, and the purchase price is not yet paid off in cash (i.e., it's not "sold").