What is a SKU in relation to inventory?

• A. A barcode
• B. A product code
• C. A supplier code
• D. A batch number

Answer: (B)

A SKU is the internal product code used to manage inventory. It stands for Stock Keeping Unit and is assigned by a business to identify a specific item or variation—such as a particular product, size, color, or model—within its own inventory system. This code enables accurate tracking of stock levels, pricing, replenishment, and reporting, and it can encode the item’s attributes so different variants are clearly distinguished. It’s not the universal barcode you scan at checkout (that’s a barcode like a UPC/EAN used for external identification); it’s an internal reference used by your systems. A batch number tracks production lots, and a supplier code points to who supplied the item, so they serve different purposes from a SKU.