Question

Hi, can someone pls help me Identify a reason why Inventory has changed over time? Is this a good or bad thing?

Thank you!

Answer 1

Answer Inventory is a stock of proclucts that are not sold and writing to be sold. Inventory Articles are referred to as stock of current inventory. The change in inventory is the difference between the leest vist in the last period of the year and the last list in the current periodo The change in inventory is the no difference between the sum of the lists in the end report and the current report periode. The Calculation of goods and prices sold at the beginning of the year and the list used in the literature section was the sturting point for how well the inventory was being organized. It is weel financiculty to estimate future cash focery. If one gives

a financial buelget only on an annuell basis, the changes will be Calculeteek for one yeur ony. The changes to the list are usucury Caleuluteel in only one or three , months. inventory may have an annual income statement account with a decluction. This account determines the transaction ucung of the company's of #egoods. Chenges in accounting inventory ass part of the formula used to report the cost of goodle sold Inventory Start t purchase - Enc inventory = cost of goods sold. Thus, ed is used to calculate the cost of goodle sold Content mancujemen't collection Management coorkers have ciseel the notion of inventory changes as ce result of their purchase and storage

Utilizection policy thert changes the organization's inventory. They usucury come clown to the list changes statistically and rewrite all the list chunger Cash budgeting. The buelyeting staff estimater how the inventory changes each coming periocl, and if this recluces the inventory, then the cash transuetion will have to be used Doing so will result in a change in cash. Because cash es needlech during such times.