Which category includes items ready for sale to customers?

The category that includes items ready for sale to customers is 'Finished Goods'. This classification refers specifically to products that have completed the manufacturing process and are fully prepared for delivery or sale to end customers. These goods have gone through all stages of production and do not require any additional processing or assembly.

Understanding the significance of finished goods is crucial for inventory management and financial reporting, as they represent the stock that can be sold to generate revenue. This distinction sets them apart from raw materials, which are initial inputs for production, and work in progress, which includes items that are still in the production phase and not yet ready for sale.

Merchandise, while it may seem similar to finished goods, typically refers to products that are bought for resale in a retail context, emphasizing their context in the supply chain rather than the state of production. Thus, finished goods are specifically aligned with the idea of readiness for consumer purchase.