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Assets

Inventory

Last updated Over 1 year ago

What is Inventory?

Inventory includes all the goods and materials a company holds for the purpose of selling or producing products. It is classified as a current asset because it is expected to be sold or used within one year. Inventory typically falls into three categories:

  • Raw materials – items used in production

  • Work-in-progress (WIP) – partially finished products

  • Finished goods – ready-to-sell products

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