Section 2
Controlling Inventory
Book
Version 3
By Boundless
By Boundless
Boundless Accounting
Accounting
by Boundless
4 concepts
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Internal Controls
Inventory internal controls ensure that a company has sufficient resources to meet its customers' needs without having too much goods.
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Perpetual vs. Periodic Counting
Perpetual inventory updates the quantities continuously and periodic inventory updates the amount only at specific times, such as year end.
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Conducting a Physical Inventory
There are three phases of a physical inventory: planning and preparation, execution, and analysis of results.
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Impact of Measurement Error
Measurement error leads to systematic errors in replenishment and inaccurate financial statements.