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which type of inventory method used in top ten company?
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∙ 13y ago
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Can you briefly discuss three types of lender control used in inventory financing?
The three types of lender control used in inventory financing are a.Blanket inventory lien - general claim against inventory or collateral. No specific items are marked or designated. b.Trust receipt - borrower holds the inventory in trust for the lender. Each item is marked and has a serial number. When the inventory is sold, the trust receipt is canceled and the funds go into the lender's account.c.Warehousing - the inventory is physically identified, segregated, and stored under the direction of an independent warehouse company that controls the movement of the goods. If done on the premises of the warehousing firm, it is termed public warehousing. An alternate arrangement is field warehousing whereby the same procedures are conducted on the borrower's property.
How would you value a retail store's inventory for liquidation?
The condition of the goods and the supply and demand for the goods would both be factors that affect the liquidation value of a company's inventory. The sales method used during the disposal of the inventory would also impact the value of the goods sold. Inventory liquidators know that anything can be sold if the price is low enough but generally chose a method that best meets the needs of the company or creditor selling the goods. If cash is needed quickly goods can be sold at auction to the highest bidder with no reserve price. If time is not critical goods can be initially marked down by a certain percentage and then at incrementally larger discounts until the inventory is completely liquidated.
What are the objectives of stocktaking?
It is a physical verification of the quantities and condition of items held on the business premises. Can be used as part of a company audit. In some industries the stock take will be used to inform the inventory figures to ensure an accurate measure of stock in hand.
What is an example of a company action which was legal but not socially responsible?
An example of a company action which was legal, but not socially responsible might be the dumping of items into the trash that can still be used. Retailers follow this practice to get rid of inventory they cannot sell. It is wasteful to just throw this merchandise away when it is still usable by someone.
What is the difference between periodic and perpitual inventory system?
Periodic Inventory System Inventory account and cost of goods sold are non-existent until the physical count at the end of the year. Purchases account is used to record purchases. Purchase Return account is used to record Purchases Returns account. Cost of goods sold or cost of sale is computed from the ending inventory figure For goods returned by customers there are no inventory entries. Perpetual Inventory System Account and the balance of costs of goods sold and inventory account exist all the time. No individual purchases account but the purchases are recorded in the Inventory Account. No individual Purchase Returns account but the purchases return are recorded in the Inventory Account. Record cost of goods sold/cost of sale - inventory is reduced when there is a sale. Returns from customers are recorded by reducing the cost of goods sold and adding back into inventory.
Different methods of inventory in purchasing?
FIFO and weightage average method are the generally used methods in inventory calculations.
What kind of process is inventory management?
Inventory management is the process whereby a company oversees the constant flow of records which are used for accessing any taxes due on any inventory type.
What are Problems of manual inventory systems?
Manuel inventory systems are used with no technology and inventory is physically counted. The problems with this type of system include that they are time consuming, counts can be off and cost the company money, and ordering supplies can be off if the inventory is not done correctly.
What is inventory turnover?
this is a ratio used to find out how many times inventory is sold out and replaced in a company's fiscal year.
Which inventory pricing method is being used when a company recalculates inventory prices every time a new item is added to the inventory?
Weighted Average
What is finished goods inventory turnover ratio?
A finished goods inventory turnover ratio is the rate that the inventory is used over a period of time. This measurement shows a company how it is doing in general. If there is too much inventory, then a company isn't doing that well.
What documents are used to inventory adjustments?
Type your answer here... retial method
What are the two most widely used methods for determining the cost of inventory?
I believe that it is FIFO and LIFO, which is first in first out and last in first out.
What is stock turnover ratio?
Also called the Inventory Turnover Ratio, this is a measure of the number of times inventory is sold or used in a time period corresponding to the average inventory held by the company. This ratio can help us determine how efficiently the company is using its inventory (raw materials) to generate revenue and income. i.e., how quickly is the company able to transform the inventory into finished goods that can be sold and generate an income.A high turnover rate means that the company is utilizing its available inventory effectively but a very high value may cause risks of inadequate inventory levels. Whereas, a low turnover rate means that the company is overstocking or there are deficiencies in the production strategies.Formula:STR or ITR = Total cost of goods sold / Average Inventory
The two most widely used methods for determining the cost of inventory are?
Cost or Net Realisable Value, which ever is lower. Net realisable value can also include the cost of repairing damaged inventory to get it to a sellable condition.
What is meant by inventory compilation?
Inventory compilation is used by a company when reconciling physical inventory with perpetual inventory records and consists of the following procedures: counting the physical inventory, correctly summarizing the quantities, extend prices times quantities, and foot the extensions. Totals should agree with the amounts recorded in general ledger.
Determine the annual unit sales volume at which Candice company would be indifferent between the two manufacturing methods?
There are two types of manufacturing methods. These are labor intensive and capital intensive. The type of manufacturing used should be determined by costs and revenue.
