Inventory management, Financial Accounting

Assignment Help:

Most firms build and keep inventories in the course of doing business. Manufacturing firms hold raw material, finished goods and spares and work in process in inventories. Financial services firms conduct inventories in the form of portfolio of marketable securities consisting of debt, hybrid and equity instruments. Retails firms as shops, super markets, shopping malls hold inventories to meet order for products from customers.

In case of manufacturing firm's inventories presents main asset category, subsequent only to machinery and plant. The proportion of inventory to total assets ranges in between 15% to 30 %.

Inventory management is not an isolated activity; that needs coordination amongst the departments of purchasing, marketing and production. Decisions including of the purchase raw material is obtained through the production and purchasing department, but work within process inventory is affected through the production department. Finished goods inventory levels are decided through both the marketing and production departments. As these entire decision ends up in tying of resources the financial manager has the duty to make sure that the inventories are suitably monitored and controlled.


Related Discussions:- Inventory management

Dividends-capital commitments-notes to the accounts, Dividends During th...

Dividends During the year, the company paid a dividend of Sh.2 per share on the ordinary share s outstanding and Sh.1 on the preference shares outstanding. The company is now pr

Binary coded decimal, Binary Coded Decimal BCD stands for Binary Coded ...

Binary Coded Decimal BCD stands for Binary Coded Decimal. The information given to the computer is stored temporarily before it is processed.  Consider a number 827. The bin

Explain about spring and forward loading, Q. Explain about Spring and Forwa...

Q. Explain about Spring and Forward loading? Spring loading - Timing of option grants to occur before good news or after bad news is released Concerns about insider trading

Explain about tax ramifications, Q. Explain about Tax Ramifications? i)...

Q. Explain about Tax Ramifications? i) Exercise price effects capital gains of individual and effects compensation expense used by corporation for calculating company's compens

Conditions of a will-executorship laws and accounts, Conditions of a will ...

Conditions of a will A written will is not valid unless it fulfills the following conditions. 1) The testator must sign the will; or he must affix his mark to the will (i.e. a

Liquidity ratios, Liquidity Ratios - These ratios include the Current Rat...

Liquidity Ratios - These ratios include the Current Ratio and the Quick Ratio or the acid test ratio. Liquidity ratios show the Liquid position of a company in the short term i.e

Explain the favorable variance, Question: The manager of Ben and Jerry's Ic...

Question: The manager of Ben and Jerry's Ice Cream is told that the direct material quantity variance for cherries in Cherries Garcia Ice cream is favorable. What could explain thi

Show the capitalized cost, Q. Show the Capitalized Cost? Capitalized Co...

Q. Show the Capitalized Cost? Capitalized Cost - Expenditure identified with services or goods acquired and measured by theamount of cash paid or market value of other property

State the accounting as an information system, State the Accounting as an i...

State the Accounting as an information system We know that accounting can be seen as provision of a service to 'clients'. Another way of viewing accounting is as a part of busi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd