Definition : Items Included

Lexicographic meaning of "Inventory" is a detailed list of goods. But in inventory management and its management accounting, the term includes, besides stock of raw materials and of finished goods, partly finished goods also. It refers to the aggregate of all such items of tangible personal (or ownable) property which are 

• held in the ordinary course of business (not for speculative or irrelevant purposes); 
• relevant to, and usable in, or in the process of, production for such sale; 
• to be currently (or in the immediate future) consumed (or converted by being worked upon) in the production of goods or services (like petrol being used transport in a "Travels" company), to be available for sale (or in the line of business by service - like providing transport). By this definition and concept, besides convertible stores, spare parts, loose tools (which are not long-term assets) can also be included in the orbit of inventory.