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Can you be a little more specific please and perhaps I can help
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∙ 14y ago
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Important of inventory?
Keeping track of your inventory is highly important when operating a successful business. Knowing what you have in stock or when you need to order something before you run out of stock will keep customers happier.
Difference between cycle stock and safety stock?
Cycle stock and safety stock are both goods a company holds to supply to customers but the cycle stock is used for immediate orders while the safety stock is held to meet the fluctuations in demand. The two kinds of stock are usually stored in separate areas of a business.
Why might a firm keep a safety stock?
I firm will and should keep safety stock if the cost of stocking out, is higher then the cost of carrying the inventory. Example, a sporting goods store has a demand of 5 baseball bats per week. Yet, there is a 50% probility that they will sell 6 bats. That cost of not having that bat in stock will cost the store (in the simple example, the cost would be the contribution margin, aka profit from selling that bat). On the other had the store might only sell 5 bats, and have one extra, yet that cost to "carry" the inventory, in most cases is less then the cost of the loss of the sale.
What is the inventory?
Inventory is the complete list of stock a business has on hand - ready for use or sale. It can also apply to the contents of a building, or home.
Why is closing stock written at credit side in trading account?
Closing stock or as it is also named as closing inventory is definitely an asset. But trading account is not the same as Inventory account. Inventory, being an asset, should have a debit balance in Inventory account. Trading account is a distinct account and both must not be mixed up together.The answer to the question "why closing stock is written on the credit side of the trading account" lies in understanding two points:First, Cost of sales must be matched up with current year's revenue and as the inventory at the end of the period has not been sold and thus should not be accounted against sales revenue, therefore it must be deducted from cost of sales. That is the conceptual reason why we deduct closing stock from the total of opening inventory and purchases.Second, in order to account for the inventory at the year end in the trading account, closing entry is passed and due to this closing entry closing stock appears at the credit side of trading account. This is the accounting reasonfor having it on the credit side. The closing entry is as follows:Debit: Inventory accountCredit: Trading accountInventory account is debited as inventory is still with the entity at the end of the period and is an asset so asset will be raised by debiting the inventory account.Students must understand that at the end of the period this asset is raised because usually it is not known how much stock is still with the entity until stock count and it was all treated as part of cost of sales i.e. trading expense against this period sales.But as it has not been traded that's why trading accounting in which cost of sales has been recorded it will be credited to give the correct information of the total inventory consumed in making current period's sales which is Opening Inventory + Purchases - Closing Inventory.
Distinguish between in-process inventory and safety stock inventory and seasonal inventory?
Inventory need for the ongoing process and kept at a level that production will not be affected. Inventory kept for emergencies, or as a buffer for a sudden a surge in demand. Inventory that is only needed for one season, after which it is sold off or stored off-site.
What is buffer inventory?
Buffer inventory, also called buffer stock or safety stock, is a cushion of supply in excess of forecast demand. Buffer inventory is used to reduce the incidence or severity of stock-out situations in sales and thus provide better customer service. It's also used in production or other inventory situations to ensure unexpected demands can be met with some degree of certainty
What is the difference between stock and inventory?
The difference between stock and inventory is that stock is what you have if you're selling items. Inventory includes what you have as your belongings.
How do you spell inventory?
That is the correct spelling of the word "inventory" (stock of merchandise).
What are four safety issues that are part of a health inventory?
All safety issues should be a part of a health inventory. The inventory should look into:Safety equipmentApproved tools/heavy equipmentPersonal safety equipmentPersonnel health and safety training
What is meant by inventory valuation?
it will be like inventory at shop. shopkeeper keep on rotating his shop inventory after its safety stock goes down(by ordering ). doing this he is rotating the inventory and generates sales. if shop has 100 articles . if he rotates 50 articles thrice a week and 10 times in month. better is the profit generation.
What is supply chain management inventory?
Maneging the company inventory or stock.
Is inventory stock?
Stock inventory is the total items with the person who is doing business. Stock means the goods which are with one when one is selling items or goods. Inventory means all the goods including one's own assets.
What is stock inventory?
Stock inventory is the total items with the person who is doing business. Stock means the goods which are with one when one is selling items or goods. Inventory means all the goods including one's own assets.
Does consignment stock have to be reported as inventory?
Yes, consignment stock must be recorded and reported. It is a non-asset inventory and must be documented.
What are the different between stock and inventory?
Stock is the goods or items held by a business (shop, warehouse, factory, etc). An inventory is a list of the stock held by the businesses listed above.
What is the difference between an inventory coordinator and an inventory analyst?
To my opinion Inventory coordinator is a person who monitors the material movement from one place to another (intransit stock monitor) untill it reaches from source to destination AND Inventory analyst is a person who take the physical stock of inventory and places the order or prepare a report/decision that which inventory to be sent or to be received. Also ageing of the stock etc.
