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 it arises. These may include raw materials, finished goods, or work-in-progress inventory. Every type of

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 to the purchases accounts, and after the inventory count, it adds the figures to the inventory account.

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 balance between capital tied up in the inventory and the availability of

Definition: Consignment inventory represents stock legally owned by one company or business but held by another. Usually, the risks and rewards associated with consignment inventory remain with the company that owns it. Consignment inventory is common in industries where companies transfer their goods to the dealer, which distribute or sell them further. The dealer, in

What Is Goods In Transit? Goods in Transit indicates the stock that is bought from the purchaser and delivered through a dealer, nonetheless, the merchandise is in transit but still needs to arrive at the proposed buyer. Towards the ending of an accounting time frame, such stock items permit exceptional consideration for accounting such merchandise