Principle objective of this lecture is to presentation on Inventories and its management. Here major focus on Classifying Inventory, regardless of the classification, organization report all inventories and stocks under Current Assets within the balance sheet. Lecture also focus on Inventory Cost flow methods and Inventory Costing. Finally discuss on Inventory management, it is a double-edged sword. High Products Levels – may incur large carrying costs, examples: investment, storage, insurance, obsolescence, and also damage. Low Inventory Levels – may lead to stock outs and lost product sales.