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This is a general term that can have many specific meanings in specific industries or situations. Generally, businesses have a target of how much inventory they want to keep on hand - enough to fill orders until the next shipment comes in, or enough to fill orders on hand, depending upon how the specific business operates.
Excess stock is when a business has more inventory on hand than it wants. It might be a retail business that tries to turn its inventory every two weeks, and they have six months' worth of something. Again, specific situations differ, but in general it just means they have more inventory on hand than they need or can afford or can use.
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∙ 9y ago
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Capital paid in excess of par common stock?
Capital amount paid for excess of par value of common stock is called "Share premium amount" which is also part of capital of business.
How excess stock is managed in your workplace?
how excess stock is mange in your workplace
How do you deal with excess stock?
== == From my understanding, excess stock can have several issues. First of all it wastes valuable space which can be used more efficiently running other things. Secondly, excess stock can mean that the company may suffer from wastage, as the stock can depreciate, or if the stock is a food product, it can expire. It would be best to ensure that stock is kept to a sustainable level for any organisation. If there are excess, it can be sold for extra cash. Holding excess stock is a waste, and if sold can contribute to cash if needed. What is important is to have a correct level of stock in a company. Maybe one should practice some Just In Time Systems.
What is the Accounting Journal Entry for Excess Inventory Reserve?
you take it in the closing stock .. it means that you have already added with in closing stock .. therefore you are closing stock reduce ... so excess stock entry will be made directly for the purpose of balance sheet. you are give this effect on it stock sheet only..
Meaning of attic stock?
Attic stock is excess construction material held to allow for repairs.
Is common stock an equity?
Yes Common stock is an equity of business and refundable by business at the time of liquidation of business.
What are shares in a business that the business sells called?
stock
The excess of issue price over par of common stock is termed what?
premium
What does the word 'inventory' mean and why is it important to a business?
Inventory is the total collection of stock that a business has at a given time. Different businesses have different kinds of stock, depending upon what they sell or do. Shoe stores stock shoes, grocery stores stock groceries, car washes stock detergent, and so forth. Inventory is important because if you don't have enough you cannot meet the needs of your customers, and if you have too much, then you have invested excess money in your inventory, which is inefficient and also results in higher storage costs and higher inventory taxes. So you need to have the right amount of inventory.
Where is the Buffett stock invested in?
business
What is holding stock?
Holding stock means that a business keeps the stock that it need and uses in the factory itself.
What did farmers do with excess milk that they could not afford to transport?
use it for pesonal use or stock it
