What is the LIFO Conformity Rule? Definition, Explanation, and More

Inventories

Companies need revenues to stay in business. Usually, these revenues come from the sales of products and services. While services are perishable, companies can store products and sell them to various customers. These products form a company’s inventory or...

What are Work-in-Progress (WIP) inventories? Definition, Calculation, Example, and More

Inventories

Many companies sell physical products, which constitute their primary income source. Some companies may manufacture these products while others acquire them from an external source. Usually, companies also keep their stock in hand so they can meet customer demand when...

Inventories Costing: Method, Example And More

Financial Accounting, Inventories

Overview Inventory costing is an integral part of inventory control and inventory management. It helps a business determine its cost of goods sold and eventually in gross profits. Different inventory costing methods can bring the different cost of goods sold results....

Perpetual Vs. Periodic Inventory System – Key Differences

Inventories

The perpetual inventory system is the process of keeping inventory records in real-time. The company updates its inventory account as and when it makes new inventory purchases. On the other hand, the periodic system first adds the inventory in the purchases accounts,...

What Is Periodic Inventory System? (Explained)

Current Assets, Inventories

The periodic inventory system is the physical counting method for inventory management. It is performed periodically to calculate inventory figures that lead to the cost of goods sold. A periodic inventory system takes time and effort as it is a laborious activity....

Inventory Level Control – Definition, Formula, and Example

Inventories

Inventory level control is referred to as controlling the threshold of inventory to avoid delay in production. It’s the level of inventory that should be available within the warehouse all the time. An important concept of inventory level controls is to create a...