Inventory — Microsoft Excel

Section D

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In this article, we will walk you through the fantastic journey of learning inventory in business and along with that, we also covered the basics methods of inventory and what exactly inventory is and why it is important.

Inventory

Inventory is a type of current asset and is defined as the amount of inventory kept in stock in the form of raw materials, WIP and finished goods.
We calculate the inventory conversion period on the basis of inventory. It is also known as Days Inventory Outstanding.

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We have already discussed the inventory turnover ratio in section C in Financial Ratios.

Conclusion

Finally, we will understanding the basic concept of inventory in finance and we also know about, our different products that we stock in our company or stores and when someone buy our product, it will decrease from our stock and at the time of closing of stores, we count the items that we stocked and make a invoice of reduce items for record.