inventory profit

inventory profit definition - business

inventory profit

Profit that results from the increase in value that assets undergo during the time they are held in inventory. Inventory profit, ordinarily due to general inflation, is not considered to be of high quality, because it is incidental to the firm's primary business. See also first-in, first-out, last-in, first-out.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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