Answer:
Shelf life.
Explanation:
In Business, an inventory is a term used to describe a list of finished goods, goods still in the production line and raw materials that would be used for the manufacturing of more goods in a bid to meet the unending consumer demands.
Simply stated, an inventory can be classified into three (3) main categories; finished goods, work in progress, and raw materials.
An inventory is recorded as a current asset on the balance sheet because it's primarily the most important source of revenue for a business entity.
Also, the three (3) main cost concept associated with an inventory are;
1. First In First Out (FIFO).
2. Last In First Out (LIFO).
3. Weighted average cost.
Shelf life can be defined as a measure of the length of time that a particular product could be kept or stored without it getting bad or becoming unsuitable for use by the consumers. Thus, the shelf life of a product is largely dependent on its expiration date.
Hence, merchandise without an expiration date like electronics, tools and home goods typically have a longer shelf life.
