Merchandise Inventory – Meaning, Accounting and More
Merchandise Inventory is the most common form of inventory or the inventory that everyone knows. In simple words, it is the inventory that a company has in hand for …
Costing Terms
Manufacturing Inventory – Meaning, Inventory, and More
Manufacturing inventory or Production inventory is one of the many types of inventory. It includes stock of all parts and materials that is available with a manufacturing firm for …
Batch Level Costs
What are Batch Level Costs? Batch level costs are costs that are attributed to a batch or bunch of items. It is not possible to allocate the expenditure to …
When does the cost of the inventory become an expense?
Inventory Cost as Expense The cost of the inventory becomes an expense when a business earns revenue by selling its products/ services to the customers. The cost of inventories …
Decoupling Inventory – Meaning, Importance, Advantages and More
Decoupling inventory is a type of inventory that is of use to the manufacturing firms. Moreover, this inventory comes handy if the production processes are interdependent. In this, a …
Anticipatory Inventory – Meaning, Importance, Advantages and More
Anticipatory inventory is the extra stock that a company maintains to account for fluctuations in the demand of the product. A company keeps this type of stock-based on future …
Buffer Inventory – Meaning, Advantages, Methods and More
What is Buffer Inventory / Stock? Buffer Inventory is the extra stock of either raw material or final product a company maintains as a protection against unforeseen circumstances. In …
MRO Inventory – Meaning, Importance, How to Manage
MRO Inventory means maintenance, repair, and operations inventory. It includes an inventory of all items that are useful to keep a company running. Or, we can say, it includes …
FIFO Meaning, Importance and Example
For any company, there are two possible inventory valuation methods, LIFO and FIFO. Where LIFO stands for last in first out, FIFO, on the other hand, stands for First …
Product Mix – Meaning, Dimensions, Importance and More
Product Mix, or product assortment, or product portfolio is the categories products that a firm offers. In other words, the product mix is the number of product lines a …
