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

Income statements, how to solve the question income statements

how to solve the question income statements

State the role of accounting information, State the role of Accounting info...

State the role of Accounting information Accounting information has a significant role to play in reporting the extent to which different groups have benefited from the busines

What role does accounting play in the planning, What role does accounting p...

What role does accounting play in the planning, implementation, analysis of CSR in particular and organizational strategies in general?

Sales, what is recorded sales on account of 3,280

what is recorded sales on account of 3,280

Taxtomy of intermediaries, Ask quwhats taxtonomy of intermediaries estion #...

Ask quwhats taxtonomy of intermediaries estion #Minimum 100 words accepted#

Prepare a classified balance sheet, Rehab Health Co. offers personal weight...

Rehab Health Co. offers personal weight reduction consulting services to individuals. On June 30, 2010, the balances of selected accounts of Rehab Health Co. are as follows: Acc

What is asset, Q. What is Asset? Asset - An economic resource which is ...

Q. What is Asset? Asset - An economic resource which is expected to be of benefit in the future. Probable futureeconomic benefits attained as a result of past transactions or e

Preparation of cashflow statements, Preparation of cashflow statements ...

Preparation of cashflow statements IAS 7 recommends that the cashflow statement can be prepared using two methods:- I) Direct method Whereby, cash from operations is deter

Absorption costing, Absorption costing is a cost accounting method that ...

Absorption costing is a cost accounting method that tries to charge all direct costs and all production costs of an organization to specific units of pr

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