Category: Accounting

What Is the Concept of Inventory? Learn in a Systematic Manner

Accounting Homework Help
By Phillip L'Hoette
9 Jul, 2017
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The raw materials or goods that are in-the-making, as well as the finished products, are to be sold constitute of the term inventory. One of the most important assets of business, inventory is the main source of revenue and profitable earnings for the company’s stakeholders. It usually includes all the raw materials as well as those which are in the process of manufacturing. Another word for inventory is ‘stock.’ A glimpse through inventory homework answers can be of real help!

Now, before going into details, one must know what are the main reasons to keep an inventory?

The main reasons to keep an inventory

  • Time:

The time interval that is usually during the supply of a product to the customer calls for maintaining an inventory. This way the supply is faster if products are stocked up and ready to use. Inventory is mainly required for consumption when there is variation in ‘lead time.’

  • Demand:

Demand may vary periodically, but the capacity of the producer remains unchanged. As a result, there is a need for stocking up products that are ready to be sold. Hence the need for inventory.

  • Uncertainty of demands:

An inventory may be used as a buffer when there is a sudden downfall in demand, or even if there is a sudden increase in demand.

  • Scale economics:

It is no secret that the process of buying, moving and storing in bulk is always more economical. So the production of goods one by one, whenever there is a demand for it, is not a very economical way. Hence producing and manufacturing in bulk and hence storing them in inventory is much more economical to the companies.

  • Value appreciation:

Sometimes some products gains more value when stocked for a long time in inventory. Brewing industries may store beer for a long time in order to make them more valuable. In this case, the inventory plays a great role.

What are the different kinds of inventory?

The main kinds of inventory are:

  • Raw materials
  • Work in progress and
  • Finished goods

Once the basics of inventory are known to the students, the next thing he or she must deal with is inventory accounting. That is where the problem arises, and there is a consequent need for inventory homework answers, as most students fail to understand the concept of inventory accounting.

What is inventory accounting?

There are several ways to record the cost of inventory. It all depends on who is selling and who is buying. The manufacturers when sale the goods to retailers, the price that is recorded by the retailers usually includes the sales tax as well as other costs like delivery charges, etc. On the other hand, the manufacturers include any kind of cost that is necessary for production, packaging,etc. that is all kind of costs that are required to make the inventory ready for sale.

In the case of business, however, two types of accounting systems are usually used. These are:

  • Periodic Inventory System
  • Perpetual Inventory System

The first kind only requires a spreadsheet in order to keep count of sales and goods that are still in stock. This is counted periodically to keep track of goods that are sold as well as goods that are yet to be sold and still left in inventory. Although it is not much complex, it has its disadvantages as well.

The second kind makes use of real time tracking of products sold and products left with the help of barcode reader as they are sold and purchased. It usually gives an accurate count and information about the inventory and much more common these days.

After all, these are clear to a student the next step is problem-solving using inventory. Sometimes even after understanding the basics, it is difficult for the students to solve numerical problems related to inventory.

For this, I would suggest students to take help of online inventory homework answers where all they need to do is take help from experts online to do all kinds of homework assignments.

How can inventory homework answers help?

Inventory accounting and financing using balance-sheet and other modes are very common financial numerical problems. Students often find it difficult to finish their homework and other assignments due to several reasons, be it due to shortage of time. But mostly what students struggle with most is the fact that they don’t understand the topic completely due to lack of sufficient lectures or individual interaction in classes and several other reasons.

Through online inventory homework answers, they would not only save time but also because of the simple nature of the worked out solution; they get hold of the topic discussed and came to know more and more about it.

How to get online inventory homework answers?

All you have to do is submit a form online and wait for the experts to revert back to you. The problem must be submitted along with specified deadlines and experts in these fields will respond to the request by providing a completely genuine and unique worked out solution of the problem which free from plagiarism and written in the simplest of languages.

This is the fastest and the least expensive mode of getting answer helps as students cannot afford to spend much money as well as time on homework for obvious reasons. This eventually helps the student gain knowledge on the respective topic and helps in scoring good in tests as well.

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