4 concepts
Nature of Inventory
Inventory represents finished and unfinished goods which have not yet been sold by a company.
Categories of Goods Included in Inventory
Most manufacturing organizations usually divide their "goods for sale" inventory into raw materials, work in process, and finished goods.
Components of Inventory Cost
The cost of goods produced in the business should include all costs of production: parts, labor, and overhead.
Flow of Inventory Costs
Accounting techniques are used to manage assumptions of cost flows related to inventory and stock repurchases.