Posts tagged Inventory

One among other accounting issues, which is inevitable, in the inventory area is having future value of inventory that is in doubt (e.g. inventory items …

While management of a company may consider whether using periodic or perpetual inventory system—in the aim of getting inventory system that fits into their operation, …

Inventory accounting is a wide topic. I would need to write a book to cover every bit of it. But through this post I am …

A product financing arrangement is a transaction in which an entity sells and agrees to repurchase inventory with the repurchase price equal to the original …

Rather than being recognized in the cost of goods sold or some other expense category within the current period, some overhead costs can be charged …

In order to correctly understand the mechanics and implications of a firm’s working capital, we need to take into account a firm’s financial needs for …

Many industries are characterized by high seasonality. A seasonal business is one in which the majority of its sales occurs during a short period each …

Many treasury departments find that their performance falls outside of a company’s normal set of performance metrics. The standard of performance is earnings before interest, …

There are two types of entities for which the accounting for inventory is relevant.  The merchandising entity [generally referred to as a retailer, dealer, or …

A tax deduction (also called a tax write-off) is an amount of money you are entitled to subtract from your gross income (all the money …

Your business sells products both at retail to consumers and to other businesses. You extend short-term credit to your business customers. Over the years, you …

Sometimes businesses get into trouble and unintentionally find themselves in liquidity traps. Liquidity traps come in a variety of shapes, sizes, and forms and, to …

The most inexplicable event for a senior-level manager is to see a profit at the bottom of the income statement, and yet field a request …

Obsolete inventory is any inventory for which there is no longer any use, either through inclusion in viable manufactured goods or by direct sale to …

A major ongoing debate within many departments of a company is the appropriate level of inventory to maintain. Though every business would attempt to reduce …

How are Economic Order Quantity (EOQ), Economic Production Run (EPR), Re-order Point, and Safety Stock determined and computed? Read this post for the answers. Typically …

This post contains three forms and seven reports related to the inventory function. Some of these forms, such as the receiving log and inventory tag, …

The classical view of inventory data collection is that of employees filling out forms of various kinds throughout the warehouse and production areas, which are …