MANAGEMENT

Detailed explanation-1: -As an accounting term, inventory is a current asset and refers to all stock in the various production stages. By keeping stock, both retailers and manufacturers can continue to sell or build items.

Detailed explanation-2: -Inventory. Stock. Refers to the value of parts and raw material used for manufacturing, work in process goods, and the final product. Refers to the value of all items that are available and directly sold to customers. Helps you arrive at the sale price of the stock.

Detailed explanation-3: -The difference between goods produced (production) and goods sold (sales) in a given year is called inventory investment. The concept can be applied to the economy as a whole or to an individual firm, however this concept is generally applied in macroeconomics (economy as a whole).

Detailed explanation-4: -A firm holds inventory so customers can buy. When the inventory is depleted, the firm replenishes the inventory. In the same way, an individual holds an inventory of money, to use for purchases. When the inventory is depleted, the individual replenishes the inventory.

Detailed explanation-5: -The basic difference between fixed investment and inventory investment is the type of goods on which investment is to be made. Firstly, Fixed investment refers to expenditure on investment in capital goods. In the contrast, inventory investment refers to the expenditure incurred on investment in stock.