Any material or good in anyone custody for performing activities is known as inventory. Inventory in business of furniture or electronics or else is placed for resale purpose. Inventory is in different forms that is tangible, intangible, eatables or etc.
Unit of production method is a method of calculating depreciation for a physical property that is not under the continuous use by the business entity. The unit of production method is the method of calculating depreciation that is mostly used for the machines or
Warehousing is a term related to inventory. This can be defined as a procedure where a company slowly and gradually builds up its holding of shares in some other company that the former wants to takeover in near future. In terms of inventory warehousing
Warehouse lending is an example of line of credit. This line of credit is extended by a financial institution to the loan issuer or loan originator. The main objective of this line of credit is that the loan originator must fund the mortgage that
Warehouse financing is a type of financing where the loan is sanctioned to the manufactures and business owners on the basis of their inventory. This means the goods and the commodities in the inventory of the manufacturers are used as collateral for trust in
The investment of a c company in its inventory is probably the biggest one for the business. As we know inventory is a collection of valuable and expensive items that can be stolen or resold by anyone. If the inventory consists of raw materials
Indirect materials can be referred as materials that are used in the production and manufacturing process of a business but cannot be related directly to any product or some specific job within the business. They are not as worthy as to be counted in
Goods in transit can be defined as the merchandise and the goods or the inventory that have been dispatched from the shipping dock of the seller but yet not received at the shipping dock of the buyer. Both the seller and receiver must record
The dollar value of LIFO method is an inventory method that is a minor variation of the Last In and First Out method of inventory costing. With the help of this method a business can aggregate the cost of large bundle of inventories. In
The net realizable value is a valuation technique that is used to value inventory. With the help of this technique you tend to calculate the market value of the inventory items subtracting all the predictable costs associated with the inventory such as manufacturing and
Sometimes a business doesn’t have exact inventory balance or inventory level at a certain period of time. In such cases the inventory balance can be derived by using current liabilities, current asset and the quick ratio kind of financial figures. While calculating the quick
Reorder Level is a term related to refilling the inventory. It is the level where a business, company or firm should order for a new purchase or start manufacturing a new batch to replenish their inventory as it has reached a critical level. If
A consigned stock is a stock that is legally owned by one company but physically kept by another company. The profit, loss, risks and rewards associated with the consigned stock are owned by the first party that is legal owner of the consigned stock.
The obsolete inventory is a percentage that is important for the firms and companies that have invested significantly in their inventory. This percentage helps the business to identify the percentage of inventory that is no more useable or have become obsolete. This percentage is
Just In Time Inventory or JIT is an inventory management system in which inventory is updated or products are produced or manufactured only when the demand requires that. With the help of Just in time inventory management concept the controller, manufacturer and the supplier
In order to maintain systems that meet the customer demand, customer fulfillment and production a company needs to have hundred percent accurate inventory records. In order to have an idea of accurate records of the inventory we need to have following information in hand.
Beginning Inventory can be defined as the recorded cost of the inventory at the beginning of every accounting period. In other words beginning inventory can be defined as the cost of ending inventory of the end of the preceding accounting period that is directly
A high inventory turnover means that the size of the inventory and the number of products in the inventory of a company is constantly increasing. A high turnover inventory can create a problem for the company as it may result in a complicated inventory
Average inventory is the total inventory that is held by a business for a longer period of time other than the comparison of the inventory from the last month. In most of the businesses the inventory is calculated at the last day of the