Definition: A company’s products that are either completed or in some stage of completion and that will be sold to the company’s customers. 

See Also: Cost of goods sold , gross profit , gross profit margin, Profit & Loss Statement, variable expense .

Tips: This includes all consumable inventory, raw materials, and supplies. This does not include the fixed hard assets in the business. Inventory is often not included in the purchase price of a business for smaller transactions. Knowing what to include in the inventory calculation is therefore vital to properly calculating the purchase price.