Inventory

Inventory

Inventory means:
property held for sale or for use in the manufacture of goods held for sale. Such property does not qualify for capital gains treatment. Examples of inventory are:

• raw materials.

• work-in-progress.

• supplies used in operations.

• finished goods.

There are a number of inventory valuation methods; the most widely used are first in, first out (FIFO) and last in, first out (LIFO). Financial statements normally indicate the basis of inventory valuation, generally the lower figure of either cost or current market price.

See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.

Description and Definition of First-in, First-out Inventory Valuation Method (FIFO)

An inventory valuation method that assumes any inventory sold was from the first inventory purchased.

Description and Definition of Inventory

Items held for resale in a business.

Resources

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Further Reading

Resources

See Also

Further Reading

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