What Is The Definition Of Inventory - 902 Words

CE9-1 A) What is the definition of inventory? â€Å"The aggregate of those items of tangible personal property that have any of the following characteristics: †¢ a. Held for sale in the ordinary course of business †¢ b. In process of production for such sale †¢ c. To be currently consumed in the production of goods or services to be available for sale. The term inventory embraces goods awaiting sale (the merchandise of a trading concern and the finished goods of a manufacturer), goods in the course of production (work in process), and goods to be consumed directly or indirectly in production (raw materials and supplies). This definition of inventories excludes long-term assets subject to depreciation accounting, or goods which, when put into use, will be so classified. The fact that a depreciable asset is retired from regular use and held for sale does not indicate that the item should be classified as part of the inventory. Raw materials and supplies purchased for production may be used or consumed for the construction of long-term assets or other purposes not related to production, but the fact that inventory items representing a small portion of the total may not be absorbed ultimately in the production process does not require separate classification. By trade practice, operating materials and supplies of certain types of entit ies such as oil producers are usually treated as inventory.† B) What is the definition of market as it relates to inventory? â€Å"As used in the phraseShow MoreRelatedEssay about Accounting Project: Current Ratio883 Words   |  4 Pagescompute the industry average, please do so. What is the name of the business you are reporting on?Hershey Company | A popular analysis technique is a trend analysis (also known as Horizontal Analysis), in which you analyze the change over time of specific financial data. This is shown on page 694 of your textbook. Refer to your income statement, prepare a trend analysis of Sales and of Net Income (or Net Loss) for all the years reported. Also, state what page in your annual report has your incomeRead MoreThroughput Is A Efficient Measure Of Productivity1232 Words   |  5 Pagestraditional definition of throughput as the time it takes for a product to enter the manufacturing process and leave as a finished good. I find Goldratt’s definition to be a more efficient measure of productivity. With the traditional definition of throughput it is merely measuring the time it takes for a product to be produced from start to finish. However, this does not take into account whether or not the finished products are being sold or sitting on a shelf. This is why Goldratt’s definition of throu ghputRead MoreWorking Capital Concept And Definitions Essay1063 Words   |  5 Pagesconcept and definitions According to, the first formation of the concept of working capital was possibly first established by Karl Marx (Bhattacharya 2006). Working capital was defined as current assets minus current liabilities. In general, this definition is also identified as â€Å"networking capital†. are sometimes Current assets called as gross working capital. The current assets can be divided into four main elements: (1) cash (2) marketable securities (3) accounts receivable and (4) inventory on theRead MoreEssay on Inventory Managment1206 Words   |  5 PagesInventory itself is a list of products that a company has available for sale to customers. So what is Inventory Management? By definition according to BusinessDictionary.com, â€Å"Inventory Management is policies, procedures, and techniques employed in maintaining the optimum number or amount of each inventory item†. There are many other definitions such as â€Å"a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check†Read MoreWhy Adidas And Nike Is The Best Choice For Me1643 Words   |  7 Pagesratios I have chosen for my financial analysis of my companies and explain this different ratios. 1) Which ratio and why? For my financial analysis, I have chosen 5 different ratios to compare Adidas and Nike: ROA (return on assets), current ratio, inventory turnover, PE ratio (price-earnings) and debt-to-equity ratio. I have chosen those 5 ratios because I could be able to investigate every financial side of the different companies. Comparing those ratio will help to choose in which company I shouldRead MoreSupply Chain Management : Supply Chains1476 Words   |  6 Pages1.3 Supply Chain Supply chains encompass the companies and the business activities needed to design, make, deliver, and use a product or service. Businesses depend on their supply chains to provide them with what they need to survive and thrive. Every business fits into one or more supply chains and has a role to play in each of them. The pace of change and the uncertainty about how markets will evolve has made it increasingly important for companies to be aware of the supply chains they participateRead MoreThe Goal By Eliyahu M. Veldt1180 Words   |  5 Pagessimultaneously increasing cash flow†. The measures, as outlined by Jonah, of this overarching goal were; Throughput, Inventory and Operational Expense. Throughput refers to the rate at which the system generates cash from sales, Inventory is defined as the total money invested in purchasing things intended to sell, whereas Operational Expense is the cost associated with turning inventory into throughput. These measurements as defined in the Goal differ in characteristics from how they traditionally areRead MoreCapital Expenditure And Revenue Expenditure1608 Words   |  7 Pagesadhere to and comply with the rules and regulations set out by the International Accounting Standards Board (IASB). As such, the report is limited to discussing the various expenditures covered by accounting standards. Furthermore, the report identifies what items can be recorded in accounts as assets in terms with the relevant accounting standards. 2 CAPITAL VS REVENUE EXPENDITURE The distinction between capital expenditure and revenue expenditure is vital for preparers of financial statements as onlyRead MoreIntermediate 1 Research Paper951 Words   |  4 PagesGAAP? The FASC did not change prior GAAP but it instead reorganized previous GAAP into a new structure. This new structure is organized into a new research database that is supposed to be user friendly and make finding certain GAAP easier to use. c. What does the FASB expect from the new FASC structure and system? The FASB has high expectations from the new FASC system including reducing the amount of time and effort that is used to solve an accounting research issue. The FASC also expects the CodificationRead Moreweek 3 db smitheford1158 Words   |  5 Pagesto reduce their inventory cost. But in order to reduce inventory a plan needs to be implemented. Inventory reduction cannot be done in a bubble. There are various variables that will need to be considered when executing this task. For a company the size of Smitheford Pharmaceutical inventory cost can be a large portion of the inventory value on hand. Inventory cost also known as ordering cost or carrying cost can be defined as the cost a company obtain to tore and maintain inventory over a certain