Unit of Production Method
Jennifer edwards 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…
Warehousing
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…
Warehouse Lending
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…
Warehouse Financing
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…
Internal Controls of an Inventory
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…
Indirect 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…
Goods in Transit
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…
Dollar Value LIFO Method
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…
Net Realizable Value
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…
Driving Inventory Balance
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,…
Reorder Level
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…
Consigned Stock
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…
Obsolete Inventory Percentage
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…
Just In Time Inventory
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…
Inventory Accuracy
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…
Beginning Inventory Explained
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…
Inventory with High Turnover
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…
Average Inventory Calculation
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…