Inventory SAC
Learn
Practice Test
Spaced Repetition
Match
Flashcards1/5
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced |
|---|
No study sessions yet.
6 Terms
Inventory
Goods purchased by a trading firm for the purpose of resale at a profit
Why is inventory important to a trading firm
Main source of revenue for a trading business
One of the most significant assests a firm controls
Stock is one of the most vunerable assets of a trading business because it is susceptible to damage, theft, spoilage, changes in taste or fashion
Identified Cost
A method of recording inventory by physically marking each item in some way (e.g. barcode) so that its individual cost price can be identified
First in First out
A method of recording inventory that assumes that, unless otherwise indicated, the first items purchased, are the first items sold, and therefore records inventory sold using the earliest cost price on hand
Period Cost
a cost incurred in order to bring inventory into a condition and location ready for sale that cannot be allocated to individual units of inventory on a logical basis
Product Cost
A cost incurred in getting inventory into a condition or location ready for sale and can directly be allocated to individual units of inventory on a logical basis.