The two methods for calculating ending inventory include the gross profit method and the retail inventory method. The ending inventory is the number of units of inventory that the company on hand at the end of an accounting period. This figure is need for various accounting calculations, including cost of goods sold.Know More
Using the gross profit method, add together the cost of the beginning inventory and the total cost of additional items that were purchased during the period to get the cost of goods available. Subtract the estimated cost of goods sold by the cost of goods available.
With the retail inventory method use the proportion of the retail price to costs in prior periods for a more exact amount.Learn more about Business Resources
According to Careerride.com, the objective of inventory management is to maintain inventory at an approved level to avoid excess or shortage of inventory. Inventory management systems reduce the cost of carrying inventory and ensure the supply of raw material and finished goods remains continuous.Full Answer >
An inventory sheet is important because it lets businesses and individuals know how much of a particular item they have in stock, making it easier to keep items in stock. To create an inventory sheet, the items must be known and then described. The items must be titled, essential details must be added to the master list, the inventory list must be created and the data must be input.Full Answer >
MTBF usually stands for "mean time between failures" and is defined as the average time between failures of a given system, according to EventHelix.com. This is calculated by taking the sum of all downtime and dividing by the number of system failures.Full Answer >
The formula for operating income is gross income minus operating expenses minus depreciation and amortization. Operating income is the revenue that remains after all variable and fixed costs are accounted for.Full Answer >