Tag Archives | Inventory

4 Main Inventory Systems | Cost Accounting

The following points highlight the four main inventory systems. The systems are: 1. Perpetual Inventory System 2. Continuous Stock Taking System 3. Periodic Stock Taking System 4. Two Bin System. 1. Perpetual Inventory System: CIMA defines perpetual inventory system as “the recording as they occur of receipts, issues and the resulting balances of individual items […]

Top 2 Inventory Control Ratio’s | Cost Accounting

The following points highlight the top two inventory control ratio’s. They are: 1. Input-Output Ratio 2. Stock Turnover Ratio. 1. Input-Output Ratio: Input-output ratio is used in material control, which indicates the relation between the quantity of material used in the production and the quantity of final output. Advantages: The advantages of analysis of input-output […]

Various Inventory Control Techniques

Economic Order Quantity: The prime objective of inventory management is to find out and maintain optimum level of investment in inventory to minimize the total costs associated with it. The economic order quantity (EOQ) is the optimum size of the order for a particular item of inventory calculated at a point where the total inventory […]

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