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The dictionary explains the word 'inventory' as stock of goods. Although, inventory implies that such type of assets that will be disposed of in future in the common course of business. Bolten S.E. has explained this as, "inventory considers to the stock-pile of the product a firm is giving for sale and the elements that make up the product." Conversely, inventory is used to present the aggregate of those items of tangible assets that are:
(i) held for sale in common course of the business;
(ii) in process of production for such sale or
(iii) To be presently consumed in the production of services or goods to be available for sale.
Inventories are held fundamentally to smoothes the operations of the firm. Shortage of inventory at any point would disrupt operations resulting in either perfect time for men and lost or machine sales. A manufacturing firm may have inventories of various stages in the production process.
Q. Describe Passive Income? Passive Income - Includes income derived from such sources like dividends, royalties, interest, rents, amounts received from personal service contra
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redemption of debentures by sinking fund method
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Q. Define Risk-adjusted discount rates? One technique in this heading is the assignment of investment projects to one of a set of risk classes all of which has a different disc
The discount rate used must normally reflect the weighted average cost of equity and debt taking into account the systematic risk of the investment. A company's weighted average co
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