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14y ago

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Why is it best to sell inventory for less than the amount paid for it?

It is NOT best. But if there is an urgent need for capital to buy fresh inventory and current inventory is not selling, some businesses will take the loss.


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.


Is it true that the more inventory a company has in stock the greater the company's profit?

Not necessarily. While having more inventory can lead to higher sales potential, it also incurs costs such as storage, insurance, and potential obsolescence. Excess inventory can tie up capital and increase the risk of markdowns if products do not sell. Therefore, effective inventory management is crucial for maximizing profit rather than simply increasing stock levels.


Explain inventory Management policies?

what is definition of inventory? what is the difference between inventory and asset?


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.

Related Questions

How do you sell Mafia Wars inventory?

To sell inventory, click on the inventory tab, put in however many items you want to sell, and then click the sell button. You should know that you will only beable to sell back inventory items for half as much as you originally paid for them.


Are there stores that sell Retail Store Supply inventory?

yes there stores that sell Retail Store Supply inventory. basically theier goal is to sell the items


How do you calculate inventory turnover?

This is a very simple calculation. Days to Sell Inventory(or Days in Inventory) = Average Inventory / Annual Cost of Goods Sold /365 Average Inventory = (Beginning Inventory + Ending Inventory) / 2 To calculate this ratio for a quarter instead of a year use the following variation: Days to Sell Inventory (or Days in Inventory) = Average Inventory / "Quarterly" Cost of Goods Sold /"90" Average Inventory = (Beginning Inventory + Ending Inventory) / 2


What is the difference between Days to sell inventory and Average age of inventory?

There is no different between the two measurement.


How do you sell items on yo ville?

Well you go to your inventory then you click on the item you wanna sell, and click the sell button


How do you sell things on YoVille?

you click on the view inventory and click on a object and if it says sell for like 15coins or more you can sell it


On miniplanet how do you sell items?

You click on your person and click view inventory. Then you click on the items you want to sell and click on sell back. :)


How much do guns sell for in Mafia Wars?

You can sell your inventory items for half the price that you bought that item for.


Why you can't sell your stuff in YoVille?

you can. go into your inventory and click whatever it is you want to sell and it should work. =)


Where is the inventory icon on YoVille so you can sell objects?

At the top where is says map and go home and other thngs like that well if you go across there will be one that says view inventory click on that and your inventory will pop up then you just click on somthing you want to sell then press sell and it is really easy hope this helps ;)


What is the difference between Sell out and sell through?

"Sell out" refers to the scenario where all available inventory of a product is sold, indicating high demand or successful sales performance. In contrast, "sell through" measures the percentage of inventory sold within a specific period, providing insight into the effectiveness of sales strategies and inventory management. While sell out focuses on total sales, sell through assesses the rate at which products are moving relative to the initial stock.


How do you sell items at a store on gaia online?

You go to your inventory area by clicking your avatar on the top of the screen, then you click full inventory. then you click on what you want to sell and wait for it to pop up then if it doesn't say 'sell item' then you'll have to sell it on the market place. There will be a sell on market place link on the same thing.