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Ending Finished Goods Inventory

oboloo Glossary

Ending Finished Goods Inventory

Ending Finished Goods Inventory (EFGI) is the term used to describe the amount of finished goods a business has on hand at the end of a given accounting period. It is usually measured by taking the sum of the products available for sale at the start of the period and subtracting the products sold within it. EFGI gives businesses an idea of their inventory levels and can be used to plan future production levels. By keeping track of their EFGI, companies are able to produce just enough of a product to meet customer demand without having too much stock that could prove costly or cause waste.

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