Inventory Controls And Inventory Control

As focusing on each of the five management assertions for the inventory account, we discovered that there are some risky areas that indicate the need for further attention during the audit. First of all, for existence or occurrence, all items in the inventory account must physically exist and be available for sale. Thus, the auditors should physically count finished goods, copper rod, and plastic inventories, and determine actual increase of inventories at year end. Also, they should select items from the inventory ledger and locate them and reconcile the quantity. Second, for completeness, the auditors should make sure that all existing inventories have been recorded completely , go around the warehouse and ensure all the inventories are recorded in the inventory ledger. Third, for valuation or allocation, the auditors should make sure that Laramie Wire manufacturing sticks with one valuation method(For inventory items, valuation is based on the lower of cost or market value, with several alternative methods for calculating cost), find out if there is any scrap inventory that needs to be recorded and written off ,and ask about obsolescence items. Fourth, for rights and obligations, the auditor should ask them if there is any consigned inventory at their warehouse. If there is, those inventories should not be recorded in the company's inventory ledger. Finally, for presentation and disclosure, the auditors should review the company's financial

Based on the information provided in the above indicated inventory analysis the financial controller and all interested parties within management will be better able to become informed regarding all indicated irregularities, material misstatements or inventory shrinkage . Furthermore, this will assist the management team in understanding and more effectively managing

My inventory control procedures provided both increased revenues and cost savings. Quite simply, I ordered adequate levels of products which were in high demand, I was able to better meet customers’ needs, and my revenues increased. The cost savings I experienced as a result of my inventory control procedures were a bit more complex. First, in establishing a routine schedule for ordering, I was able to reap the benefits of lower shipping costs. Because I had a routine schedule, I could

With accurate inventory record Mountainside Industries inventory staff will have more time available to do other things like helping other department. Not only will it improve productions but it will let inventory workers explore other skill and talent areas they have. With planning keeping accurate inventory records the company will have data that can tell them whether to take particular projects with inventory on

Without Inventory Managers the military would not know the quantities buy, repair and/or discard during each quarter. The IMS has approximately18 different systems, 6 different reports and 5 different regulations they use on a daily basis to perform their job. Each IMS must accurately file maintain data such as; assets levels, costs for buys, cost for repairs and excess stock. As well as, the lead times for purchase request, contract award dates, and the time it takes to receive t10% of each purchase. Not to mention, what backorders (request of assets) to fulfill, when and where to send assets, how to take care of terminations of contracts, know how to handle Foreign Military Sales, and other Branches of services (DMISA-Depot Maintenance Inter-service Agreement). So, in a sense Inventory Managers are the “accountants” for the Air Force and other Military

Improper inventory management affects long term profitability and may fail ultimately. 10 to 20% of inventory can be reduced without any adverse effect on

Inventory often is one of the largest amounts listed under assets on the balance sheet which means that it represents a significant amount of the resources available to the business. The inventory may be excessive in amount, which is a needless waste of resources; alternatively it may be too low, which may result in lost sales. Therefore, for internal users inventory control is very important. On the income statement, inventory exerts a direct impact on the amount of income. Therefore, statement users are interested particularly in the amount of this effect and the way in which inventory is measured. Because of its impact on both

It can avoid some problem about inventory for company. With less inventory in a system, it are quickly exposed in production that disrupting flow. Some firms shy away problems, in Toyota however the opposite logic is applied. By reducing inventory you expose the real problem in production process quickly and focus need for improvement. The second primary of system is Jidoka (build in quality). Using this system it can the Toyota production system been as rare.

Inventory mismanagement – It is identified that there is a lack of regular stock count. The concept of safety stock doesn’t seem to exist in the current business process.

Besides that, it also can help to reduce the waste .A high inventory turnover can prevents goods becoming damaged or obsolete while sitting in storage especially those goods which has short expire period. This can saves money by preventing investment in unnecessary stock, and reducing the need to replace old stock.

Three ways in which inventory-related costs can affect an organization’s profit and loss statement from one year to the next are inventory errors, inventory carrying costs, and inadequate inventory levels leading to customer service costs. According to Weygandt (2005), inventory is vital in determining the results of operations for a particular period.

I will also emphasize on why it is important for a company to choose a good inventory method so that it does not affect its financial statements. Inventory had always been an integral part of the financial statements.

As most organizations grow, the techniques of how the organization acquires their supplies and allocates its goods; should grow. Using some of the vastly different ways that an organization could implement to keep an eye on how they are doing, for example the amount of profit being made or the amount of product being produced and sold.. An organization has to make sure that they keep track of the amount of inventory to ensure the amount of orders they will have to complete. But it’s not just about the profit an organization makes. For instance not only do organizations use supply management but cities and states do as well during crises such as natural disasters.

Inventory: A larger inventory reduces the risk of stock-out and it is also a vehicle to increase sales. The negative side of inventory is the same as trade receivable (Nazir and Afza, 2009; Deloof, 2003). Lazaridis and Tryfonidis (2006) states that an optimum level of inventory will have a direct effect on profitability since it will release cash invested in working capital and could also respond to a high demand.

Having too much of a product could result in an advantage and disadvantage to a business or the customers. The reason it would be considered a disadvantage, a business will be considered the reputation would be on the line because not having the product demanded by the consumer in stock resulting in an unsatisfying customer and possibly never coming back. While having the demanded products available to the customers there will satisfy them in return of a future customer. Quoted by a Discount Tire Company customer after being satisfied with his whole life purchases with the company, he said "All my years coming here, I never had time that I can remember where I had to go somewhere else to find the right size or brand needed for my vehicle, that 's why I always come here!". The company is warehouse store where the inventory is always in stocked in-home product meeting every demand resulting in good returning customers. As well, small businesses can obtain savings when purchasing some supplies in bulk quantities. Suppliers may