If you are a product centric business, this category is for the goods you buy to then sell to your customers. It feeds in to your Cost of Sales figure after you sell the item and represents the value of assets you have sitting in a warehouse waiting to be sold.
What's included
The raw materials or the finished products that you sell to your customers. Depending on your core business, this could be a range of goods. Make sure to include the following costs in this category:
Raw materials
Finished products