meaning of finished goods

meaning of finished goods refers to products that are fully manufactured and ready for sale to customers. Finished goods are the final products in the production process and are typically stored in inventory until they are sold. These products have undergone all necessary production, assembly, and quality control checks, and they are now available for distribution or retail sale. Finished goods are a key component of a company’s balance sheet, as they represent the value of products that are ready for revenue generation. Managing finished goods inventory is crucial for businesses to meet customer demand while avoiding overstocking or stockouts.