Comparing LIFO and FIFO methods of Inventory
Jennifer edwards LIFO and FIFO method of inventory is used to calculate the cost of the present inventory and to find out the actual ending inventory. FIFO and LIFO have their own…
The Gross Profit Method of Inventory Accounting
The gross profit method can be used to calculate the average inventory at the end of a particular accounting period. The basic use of gross profit method of inventory accounting…
Retail Inventory Method
As we all know an inventory is a detailed record of all the stored goods or items business posses for a certain period of time. Inventory gives the status of…
Inventory Turnover Ratio or Stock Turnover Ratio (ITR)
Shamsa Rafique Inventory Turnover Ratio or Stock Turnover Ratio (ITR) : Every firm has to maintain a certain level of inventory or stock of finished goods so as to be able to…
Stock Control
Stock Control: Definition and Explanation: The materials purchased by a concern may be classified as stock items which are taken into store and held until required, or as direct deliveries…
Requirements of a System of Materials Control
Abida Rehman Requirements of a System of Materials Control: The important requirements or essentials of adequate satisfactory system of materials control are as follows: Proper Coordination Competent Purchasing Agent Use of Standard…
Re-order Level or Ordering Point or Ordering Level
Re-order Level or Ordering Point or Ordering Level: Definition and explanation of re-order point Formula of re-order level or ordering point Examples Definition and explanation: This is that level of…
Similarities between Job Order and Process Costing System
Similarities Between Job Order and Process Costing System: Learning Objectives of this article: What are the differences and similarities in process costing and job order costing procedures. Similarities between job…
Physical Inventory – Inventory Valuation
Rubab Ali Physical Inventory - Inventory Valuation: Even with a perpetual inventory system, periodic physical counts are necessary to discover and eliminate description between the actual count and the balances on materials…
Minimum Limit or Minimum Level of Stock
Minimum Limit or Minimum Level of Stock: Learning Objective: Definite and explain minimum limit or minimum level of stock. How is minimum limit or minimum level calculated? Definition and Explanation:…
Maximum Level or Maximum Limit of Stock
Maximum Level or Maximum Limit of Stock: Learning Objective: Definite and explain maximum limit or maximum level of stock. How is maximum limit or maximum level calculated? Definition and Explanation:…
Materials Ledger Card–Perpetual Inventory
Materials Ledger Card--Perpetual Inventory: As purchased materials go through the systematic verification of quantities, prices, physical condition, and other checks, the crux of the accounting procedure is to establish a…
Materials and Inventory Cost Control
Materials and Inventory Cost Control: After studying this chapter you should be able to: Materials control is the system that ensures the provision of the required quantity and quality at…
Danger Level of Materials or Inventory Stock
Danger Level of Materials or Inventory Stock: Definition and Explanation: Some enterprise also calculate danger level. When this level of stock is reached, then emergency steps are taken by the…