Final answer:
The type of product that a company buys and tracks the quantities of is categorized as inventory, which consists of ready-for-sale goods that a business manages. Managing inventory is critical for businesses to optimize their supply chain and can affect GDP.
Step-by-step explanation:
The type of products and services that companies buy and track quantities of falls into the inventory category. These are items that a business has produced or purchased and are intended for sale. They are considered assets on a company's balance sheet. Inventories can include raw materials, work-in-progress goods, and finished goods that are yet to be sold. They might be durable goods, such as cars and refrigerators, or nondurable goods like food and clothing. The management of inventory is crucial for businesses as it ties up capital and has a direct impact on the cash flow and profits. A change in inventories can signal how well a business is matching its supply with consumer demand and can impact the overall GDP.
For tracking and managing inventory, companies may use various tools and systems to ensure that they maintain sufficient stock levels to meet customer demand without overstocking, which can lead to increased costs and waste.