As used in accounting, inventory describes assets that a company intends to liquidate through sales operations. It includes assets being held for sale, those in the process of being made, and the materials used to make them.
Overhead (O/H) costs describe expenses necessary to sustain business operations that do not directly contribute to a company's products or services. Examples include rent, marketing and advertising costs, insurance, and administrative costs.
Tracking operations that record, administrate, and analyze the compensation paid to employees are collectively known as payroll accounting. Payroll also includes fringe benefits distributed to employees and income taxes withheld from their paychecks.
