Inventory at cost

Definition

What the sellable stock cost the store, counted separately at closing on top of the price.

Why It Matters

Inventory here is large, liquid, and countable, which makes a physical count at closing standard practice and a useful second opinion on the price. Do the count yourself or pay someone independent, and watch for slow-moving stock valued at what it cost instead of what it will sell for. A store whose shelves are full of product nobody buys has converted cash into decoration, and you are being asked to buy it at cost.