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Inventory are current assets that are expected to be sold by a business. The following are the common types of inventory.Materials & ComponentsInputs that will be used in the production of products and services such as the food in a restaurant's kitchen.
Partially finished goods waiting for completion such as a stock of bicycles waiting for tires at a bicycle factory.Goods that are ready to be sold. These may be warehoused for a period of time.Finished goods that are in transit to your end-customer or distribution channels.
Consigned GoodsInventory that has been delivered to your distribution partners that you still own. For example, an automobile at a car dealership that is still owned by the manufacturer.Goods that have been purchased to be resold such as the goods held by an ecommerce distribution center.Maintenance, Repair & Operating SuppliesSupplies that are consumed in the production of a product or service that aren't part of the product itself. For example, cleaning supplies and tools.|
| Type | | | Definition | Current assets that are expected to be sold by a business. | | Related Concepts | |
Inventory Management
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