1. Classifications of inventory Inventories are the assets of a company which are held for sale in the ordinary course of business in the process of production for sale, or held for use in the production of goods or services to be made available for sale1. Classifications of inventory Intermediate Accounting 7 Inventories Inventories are the assets of a company which are : ➢ held for sale in the ordinary course of business, ➢ in the process of production for sale, or ➢ held for use in the production of goods or services to be made available for sale