Final answer:
Finished goods are completed products ready for sale, and inventory levels are indicative of business performance.
Step-by-step explanation:
True, finished goods are indeed a classification of inventory for a manufacturer that are completed and ready for sale. Finished goods refer to items that have completed the manufacturing process and are ready to be sold to consumers or distributors. The management and turnover of these goods are critical as they directly correlate to a company's revenue: if business is better than expected, inventory levels of finished goods tend to decline due to higher sales, whereas they tend to rise if business is worse than expected, indicating lower sales and excess stock.