The Beginning Finished Goods Inventory Formula can be a helpful tool for businesses in understanding the financial standing of their operations. Specifically, this formula helps calculate how much inventory of finished goods is available to a company at the start of an accounting period. By using the beginning finished goods inventory formula, companies can accurately assess the changes in their stocks and the economic flow over time. Knowing the exact values of the beginning and ending inventory of finished goods allows companies to make informed decisions about production, pricing, and other vital operations for long-term success.