Stock

Stock, also called inventory, is the goods and materials a business holds for production or sale. A car manufacturer might hold steel, components such as gearboxes, partly completed cars and finished vehicles. A retailer mainly holds goods ready to sell.

Stock is what a business holds ready for production or sale. It includes raw materials, work in progress (partly completed products) and finished goods. A bakery might hold flour, dough being prepared and bread ready to sell.

The business considers what it plans to produce or sell and the stock it already holds. It also needs to identify the required quality: materials must be suitable for their intended use.