The business has RM3,000 closing stock as at 30 November 2021. The expected sales for the month of December are RM10,000. The cost of sale is 60% of the total sales. It is the business policy to prepare 50% of inventories for the following month’s sales. Calculate the value of purchases to be made if the expected sales for the month of January is RM12,000. a.RM7,200 b.RM6,000 c.RM6,600 d.RM3,600 The amount that contributes to profit after covering all expenses is called ___. a.contribution margin b.net sales c.gross profit d.operating margin

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.