Accounting Category: Inventory

Accounting Articles

February 27, 2016

Inventory represents another important area in a lot of organizations. This article provides a list of inventory best practices.

December 6, 2015

Working capital plays in important role in a company. In this article, we will take a look at ten reasons working capital requirements can increase and how to better manage working capital.

October 17, 2015

Most companies have some internal controls over financial reporting in place. However, few companies may realize that such controls are not only a compliance requirement (i.e., for public companies), but also that such controls impact the operational performance. In this article we will discuss how material weaknesses in inventory-related internal controls can impact operational performance.

September 26, 2015

New accounting standards are issued by standard setters (e.g., Financial Accounting Standards Board) on a somewhat regular basis. They are aimed at improving financial reporting. However, sometimes such standards may also have unforeseen results. In this article, we discuss such results of SFAS No. 151, a standard related to accounting for inventory production costs.

August 16, 2015

The article below discusses how to distinguish property, plant and equipment from inventory, provides key controls for purchasing inventory purchasing and underlines some peculiarities of capital acquisitions.

May 30, 2015

In this accounting guide we will look at the main principles of the traditional costing model and compare it with activity-based costing (ABC).

May 7, 2015

In the highly competitive market conditions enterprises are forced to increase their profitability. In this article we will review the impact of inventory on financial results of a company

August 10, 2014

Some costs are easy to identify as those which can be capitalized as part of inventory costs because they are clearly related to the manufacturing process. This is the case with direct costs and some indirect costs. Other costs are not as easy to analyze from the standpoint of inventory capitalization. In this article we will look at such costs and whether they should be included in inventory costs.

January 18, 2014

Company managers need to keep track of costs in order to make wise decisions about day-to-day operations. In this article, we discuss process costing, a method of allocating costs for manufacturers of many identical products.

January 11, 2014

The process of tracking production costs is critical for the information needs and reporting requirements of manufacturers. In this article, we’ll discuss a method of cost distribution called job costing. After describing the theory behind job costing, we’ll walk through an example - a manufacturer of drag race engines.

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Accounting Categories
Accounting categories represent a collection of accounting guides and answers related to one accounting area.