Term of the Day inventory 1. An itemized catalog or list of tangible goods or property, or the intangibleattributes or qualities. 2. The value of materials and goods held by an organization (1) to supportproduction (raw materials, subassemblies, work in process), (2) for supportactivities (repair, maintenance, consumables), or (3) for sale or customer service (merchandise, finished goods, spare parts). Inventory is often the largestitem in the current assets category, and must be accurately counted and valuedat the end of each accounting period to determine a company's profit or loss.Organizations whose inventory items have a large unit cost generally keep a dayto day record of changes in inventory (called perpetual inventory method) to ensure accurate and on-going ... Learn more about this term Usage Example You can consider buying wholesale, clearance or outlet products in bulk to increase your margins, but remember that if the first product doesn't sell, you'll end up taking a huge loss on your inventory.

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