Tag: Inventory

What Is an Inventory Audit

What Is an Inventory Audit? Benefits & Procedures

The lawyer and inspector general Robert Cobb said, “If you can’t show through an audit trail how you arrived at the numbers in your balance sheet, that is a significant internal control failure.” Your goods for sale are a central part of your business. Keeping track of them regularly lets you maintain a flow in your […]
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Average Cost Inventory Method

The Weighted Average Cost Method of Inventory Valuation

If you have a large inventory, calculating its cost is a pain, but it’s essential to understand how much capital is invested in it for making informed financial decisions. However, listing down the cost of each item by hand is short of impossible. That’s where the weighted average inventory method comes in. With this formula, you can […]
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Difference Between supplies and inventory

What Is the Difference Between Supplies & Inventory?

Understanding the difference between inventory and supplies is vital for your business’s success. They are key to your budget, daily operations, and sales. Many people use these terms interchangeably, but they have distinct meanings in business. Knowing these differences will help you manage them better. In this blog post, you’ll learn about stock, supplies, and […]
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Excess Inventory

Excess Inventory: How to Avoid Surplus Inventory Items

Have you experienced a spike in storage costs? If so, your business might be suffering from excess inventory. This issue affects your business in different ways, such as increased labor costs or insufficient storage space. Even if you’re not facing the worst of these signs, excess stock burdens your business by tying up your capital […]
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WIP Inventory

What is Work in Process (WIP) Inventory and How to Calculate It

Calculating Work-in-Process (WIP) Inventory is crucial for successfully managing your business. This account of unfinished goods can help you spot issues like excessive raw material. Calculating it can also help you reduce taxes since this inventory is considered an asset. Therefore, you need to know how to calculate work-in-process inventory to leverage this. In this […]
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