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When goods are in inventory it means that they have to be kept somewhere, for example in a warehouse. There is a cost associated with keeping inventory because it takes up real estate that could be used for something else. It's not free. As a result, it is part of the "cost" of making the product available to the customer and affects price.
Natalia Roberts
Wiki User
∙ 10y agoWhen goods are in inventory it means that they have to be kept somewhere, for example in a warehouse. There is a cost associated with keeping inventory because it takes up real estate that could be used for something else. It's not free. As a result, it is part of the "cost" of making the product available to the customer and affects price.
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What doe SASSI stand for?
substance abuse subtle screening inventory
What is Weighted Average of Inventory Valuation Method?
Weighted average inventory valuation method is method in which inventory purchased at any price is put together to calculate one price for allocation in contrast to FIFO or LIFO.
What are some synonyms for the word 'price list'?
"Price list" most closely means "directory" in meaning. Words that can be used as synonyms for "price list" include "catalog", "inventory", and "tally".
How do you find the total sales given the total revenue?
By checking one's inventory -- previous inventory minus the current inventory returns the difference that, multiplied by price, and assuming a flat price, would be equal to total revenue.
Which department control the price of petrol?
The department of energy (DOE)
What is adjusted selling price method in valuation of inventories?
adjusted selling price method , retail price of the inventory is calculated and marjinal profit is deducted from it generally used in retail business also known as Retail inventory method
Formula of unrealized profit in accounting?
factory price/cost of production at market value *closing inventory at transfer price
What are some examples of planned inventory investment?
An example of a planned inventory investment might be the purchase of inventory at a reduced price to gain a larger profit margin. Another example of a planned inventory investment might be the purchase of shelving or another cash register.
What does shrinkage means in retail?
Shrinkage is the difference between the stock on the inventory book and the actual physical stock. Shrinkage is also deifned as the difference between the value ( retail price ) of the stock on the inventory book and the value of the ( retail price ) actual physical stock. Shrinkage % is calculated as the difference between the value ( retail price ) of the stock on the inventory book and the value of the ( retail price ) actual physical stock by the retail sales of this volume
Why do all items have bar codes?
Bar codes identify the item and the price. They are used by a computer to provide the price and for inventory purposes.
What is the cheapest simplest and easiest to use Inventory Software out there?
The cheapest is at about 19 bucks but it's not necessarily the easiest - Attic Manager. The maxim price for an inventory software for your home is 50 bucks. I would recommend Home Inventory at 29$.
What does floor plan financing involve?
The dealer is loaned money to buy the inventory from suppliers and holds the inventory in trust for the bank. As the borrower sells inventory to consumers, he pays the bank. The dealer keeps the mark-up of the retail price
