The Weighted Average Cost Method: When should you use it?
Inventory management is a key factor in the success of every business: from ordering inventory to counting stock accurately, understanding your business’ inventory is essential. In this article, we look at one way you can do this, namely, the weighted average cost method. This method is commonly adopted by manufacturers and other companies wh ... Read More
January 4, 2019 average landed cost, inventory cost, inventory valuationFSN Analysis – How It Can Be a Useful Tool for Inventory Management
FSN analysis is yet another acronym used in inventory management, however, rather than just being a buzzword, it really does hold a lot of merit to the stock manager. It is one of several useful analyses of inventory that facilitate accurate control and should be considered by anyone wanting to better understand the delicate nature […] ... Read More
December 19, 2018 inventory control, inventory management, inventory management software, inventory valuationThe Effects of Using the Weighted Average Cost Method
The weighted average cost method is an accounting approach to inventory valuation, it is used to determine the cost of goods sold (COGS) and the ending inventory stock. Weighted average accounting assumes that all units are valued at a weighted average cost per unit, and it applies this calculated average to the COGS in addition […] ... Read More
December 18, 2018 accounting, average landed cost, inventory accounting, inventory valuationThe Weighted Average Cost Method of Inventory Valuation
The weighted average cost method in accounting is one of three approaches of valuing your businesses inventory stock and determines the average cost of all inventory items based on the individual costs and the quantity of each item held in stock. Businesses use the weighted average to determine the amount that goes into the inventory […] ... Read More
December 17, 2018 accounting, average landed cost, business costs, inventory accounting, inventory cost, inventory stock, inventory valuationThe Ins and Outs of SDE Analysis in Inventory Management
Inventory control encompasses all aspects of managing a business’ inventory stock, from purchasing, shipping, receiving, tracking, warehousing and storage, turnover, and reordering. Inventory control is such a critical function for many businesses spanning every industry. Without effective inventory control methods, the supply chain can suffer, y ... Read More
December 15, 2018 inventory control, inventory stock, inventory valuationShould Your Business Be Using the Weighted Average Cost Method?
The weighted average cost method is an accounting method that businesses use to value inventory. This method of valuing inventory involves proportional treatment of both the cost of goods sold (COGS) and the inventory item in stock at the time of valuation. This means that both are treated the same when it comes to determining […] ... Read More
December 14, 2018 average landed cost, business costs, inventory control, inventory management, inventory valuationLIFO and when it is sensible to use it
‘First come, first served’ and ‘use the oldest milk in the fridge first before it goes off, dear’ among other phrases and situations all have a common denominator and present the same logic; we always seem to use the oldest of something in life first and the newest, the freshest, is kept for last. This […] ... Read More
May 12, 2017 cost of goods sold, inventory accounting, inventory valuation, Last in first out, LIFO10 Tips for a Successful Stocktake
A stocktake is a challenging but vital part of any company with inventory, especially given inventory can be one of the biggest assets of a company. ... Read More
March 25, 2017 auditable records, data accuracy, inventory control, inventory valuation, stocktakeInventory – how much does it actually cost?
A component of the financial assets or liabilities of a company is its inventory and the costs associated with what was sold or what remains. ... Read More
March 22, 2017 average landed cost, financial assets, first in first out, inventory valuation, last in last out