BUS 251 Chapter Notes - Chapter 7: Write-Off, Gross Margin, Weighted Arithmetic Mean

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Maureen Fizzell

Document Summary

Inventory any item purchased by a company for resale to customers or to be used in the manufacture of a product that is then sold to customers. Merchandisers or retailers purchase their inventory from manufacturers. Why is it important to users: inventory is usually the most signiicant current asset for retailers/manufacturers. Steps to selling inventor to customers at a higher price than what they paid for it: 1: decide how much inventory they want (stockout = run out of an item) Set a sale price that brings in proit but remains compeiive with other companies. Implement safeguards to prevent damage and loss due to thet. Raw materials: all items required to make a product. Finished goods: completed products that are read for sale once a product is completed the cost from work-in-process is transferred to the inished goods account. Overhead costs: other manufacturing costs such as uiliies and depreciaion of the manufacturing facility.