what are finished goods

what are finished goods refers to products that have completed the manufacturing process and are ready for sale to customers. These items have passed through all stages of production, including assembly, quality control, and packaging. In supply chain management, finished goods are recorded as inventory until sold or shipped. Businesses use this classification for accounting purposes and inventory tracking. Managing finished goods effectively ensures that companies can meet demand without overstocking, minimizing storage costs and maximizing profitability across retail or wholesale channels.