Accounting For Your Inventory Stock
Inventory can be fast moving and large in scale. In addition, inventory passes through numerous stages throughout its lifespan. In order to gain an accurate picture of a business’ financial situation, it is necessary to properly account for inventory. Depending on how a business calculates their inventory, it can reflect in different ways on thei ... Read More
January 17, 2018 FIFO, inventory accounting, LIFOEstablishing Your Inventory Value
What is value? It can mean different things to different people and will represent something different to both you and your customers. Consumers see value in the form of the benefit and functionality that a product offers. Value to the business represents the financial cost or revenue stream inventory creates. From an accounting perspective, the [& ... Read More
May 29, 2017 FIFO, inventory accounting, inventory value, LIFOLIFO 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, LIFO