business

Meaning of Inventory: The term “inventory” often refers to the supplies on hand. Another name for it is an enterprise’s idle resource. Items retained in inventory are either those that are available for purchase, are being produced, or are raw resources that have not yet been put to use.

Costs Associated with Inventory: 1. Purchase (or production) cost: The cost of producing one unit of a thing is its value. As soon as the price discounts are used, this cost increases significantly. The price is given as Rs. per unit. 2. Capital cost: Capital invested in an item (capital cost) is money that can’t … Read more