At any given time, a portion of the inventory in a manufacturing operation is in the process of being transformed from raw materials or components into finished goods. Refereed to as a work in ...

Two methods are commonly employed to value inventory -- variable costing and absorption costing. The difference between the two is in their treatment of operational overhead. Variable costing only ...

IMGCAP(1)]Inventory management is the practice of planning, directing and controlling inventory so that it contributes to the business' profitability. Inventory is an asset on the balance sheet that ...

The number of times a business sells and replaces its stock over a given time period is its inventory turnover ratio. The inventory turnover ratio, also sometimes called stock turns or inventory turns ...

A common figure in financial statements is the cost-of-goods sold; the COGS ratio is removed from a company's profits when calculating gross profit, which is a measure of profitability that assesses a ...

Detailed accounting and inventory records are not just best practice; they're key components of financial health, efficiency and compliance.

For companies that sell a product, inventory is a major consideration. The more inventory you have, the more money that’s tied up in a static product. Until you sell the product, that money isn’t ...