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International Accounting Standard Committee ( I. A. S.C. ) Defines inventories as Tangible property)
a. Held for sale in the ordinary course of business.
b. In the process of production for such sale or.
c. To be consumed in the process of production of goods or services for sale.
The American Institute of Certified Public Account ( AICPS) defines inventory in the sense of tangible goods. Which are held for sale in process of production and available for ready consumption.
Inventory includes the followings things:
a. Raw materials
b. Work in progress
c. Consumables
d. Finished goods
e. Spares
Inventory means all the materials parts supplies expense tools and in process or finished products recorded on the books by an organization and kept in its stocks ware house or plant for some period of time.
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