What is a varelager (inventory)?

In short

A varelager is the goods a business has bought or produced but not yet sold. Inventory is a current asset on the balance sheet and affects profit through the cost of goods sold.

In practice

At year-end the inventory is valued — typically at cost. Only goods actually sold (the cost of goods sold) may be expensed; the rest stays on the balance sheet as an asset until sold.

Related terms

• Omsætningsaktiver (current assets)
• Bruttofortjeneste (gross profit)
• Årsafslutning (year-end close)
• See every term in the dictionary

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