Which item is not considered inventory in a store?

Which item is not considered inventory in a store?

• A. Computers displayed on the sales floor
• B. Motherboards intended for sale
• C. Computers used by sales staff for business operations
• D. Computers being assembled and not yet ready for sale

Answer: (C)

Inventory consists of items the store holds for sale or is actively turning into saleable products. Finished goods on the sales floor are inventory because they’re ready for customers to buy. Components or products that are intended for sale, even if not yet on the shelf, are inventory as long as the plan is to sell them. Items that are still being produced for sale—like computers being assembled—are considered inventory as work in progress until they’re finished and available for sale. Computers used by sales staff to run the business, on the other hand, are not for sale themselves. They’re assets the store uses to operate (often classified as equipment or office technology and depreciated over time), so they’re not counted as inventory.

Inventory consists of items the store holds for sale or is actively turning into saleable products. Finished goods on the sales floor are inventory because they’re ready for customers to buy. Components or products that are intended for sale, even if not yet on the shelf, are inventory as long as the plan is to sell them. Items that are still being produced for sale—like computers being assembled—are considered inventory as work in progress until they’re finished and available for sale.

Computers used by sales staff to run the business, on the other hand, are not for sale themselves. They’re assets the store uses to operate (often classified as equipment or office technology and depreciated over time), so they’re not counted as inventory.