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Overstock, excessive stock, or excess inventory arise when there is more than the "right quantity" of goods available for sale, [1] or when "the potential sales value of excess stock, less the expected storage costs, does not match the salvage value". [2] It arises as a result of poor management of stock demand or of material flow in process ...
Government spending or expenditure includes all government consumption, investment, and transfer payments. [ 1 ] [ 2 ] In national income accounting , the acquisition by governments of goods and services for current use, to directly satisfy the individual or collective needs of the community, is classed as government final consumption expenditure .
For example, organizations in the U.S. define inventory to suit their needs within US Generally Accepted Accounting Practices (GAAP), the rules defined by the Financial Accounting Standards Board (FASB) (and others) and enforced by the U.S. Securities and Exchange Commission (SEC) and other federal and state agencies. Other countries often have ...
Inventory is a property of a company that is ready for them to sell. [4] There are five basic reasons that a company would need inventory. 1. Safety inventory. This would act like a buffer to make sure that the company would have excess products for sale if consumer demands exceed their expectation. [5] 2. Cater to Cyclical and Seasonal Demand
The objectives for which government entities apply accountancy that can be organized in two main categories: - The accounting of activities for accountability purposes. In other words, the representatives of the public, and officials appointed by them, must be accountable to the public for powers and tasks delegated.
FIFO and LIFO accounting are methods used in managing inventory and financial matters involving the amount of money a company has to have tied up within inventory of produced goods, raw materials, parts, components, or feedstocks. They are used to manage assumptions of costs related to inventory, stock repurchases (if purchased at different ...
Cost Accounting Standards (popularly known as CAS) are a set of 19 standards and rules promulgated by the United States Government for use in determining costs on negotiated procurements. CAS differs from the Federal Acquisition Regulation (FAR) in that FAR applies to substantially all contractors, whereas CAS applied primarily to the larger ones.
Two very popular methods are 1)- retail inventory method, and 2)- gross profit (or gross margin) method. The retail inventory method uses a cost to retail price ratio. The physical inventory is valued at retail, and it is multiplied by the cost ratio (or percentage) to determine the estimated cost of the ending inventory.