Carrying Cost: Why You Shouldn't Avoid It?
What is Carrying Cost?A carrying cost is a cost a business incurs for “carrying” or storing inventory. Any business is required to maintain a… Read Article
Inventory Management
Just in Time – Meaning, Features, Advantages and More
Just in Time (or the JIT) is an inventory management system that aims to make production super-efficient. Under this, the raw materials and labor… Read Article
Advantages and Disadvantages of Perpetual Inventory System
To understand the advantages and disadvantages of the Perpetual Inventory System, think of an Ice-cream chain with 25 outlets across the city. Also, all… Read Article
Perpetual Inventory System – Meaning, Advantages And More
Perpetual Inventory System is a method in accounting for calculating inventory immediately after the sale and purchase with the use of computerized point-of-sale systems… Read Article
Work in Progress – Meaning, Importance, Accounting And More
As the name suggests, work in progress, or WIP, are the goods that are not complete and are at some stage of production. The… Read Article
Inventory Management Techniques
Meaning of Inventory ManagementInventory Management techniques help in tracking and controlling the inventory orders, their usage, and storage, along with the management of finished… Read Article
Types of Inventory / Stock
5 Basic types of inventories are raw materials, work-in-progress, finished goods, packing material, and MRO supplies. Inventories are also classified as merchandise and manufacturing… Read Article
Inventoriable and Period Costs
Inventoriable and period costs are also a type of classification of costs. Inventoriable costs (commonly known as product costs) can be defined as costs… Read Article
How EOQ helps in Inventory Management?
Inventory Management, also known as stock management, is crucial for working capital management. Economic Order Quantity is one of the most prominent models used… Read Article
Techniques for Finding Optimal Level of Working Capital
Working capital management techniques such as the intersection of carrying cost and shortage cost, working capital financing policy, cash budgeting, EOQ, and JIT are… Read Article