Preview

Summer and Winter Inventory Systems

Satisfactory Essays
Open Document
Open Document
662 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Summer and Winter Inventory Systems
Running Head: Summer and Winter Inventory Systems

SUMMER AND WINTER INVENTORY SYSTEMS

Grant H. Yarbrough, Darnetta Brown, Joel Jones, Zehra Ozezer, Angela Young

QRB/501

March 6, 2011

Jeffrey Greene

Running Head: Summer and Winter Inventory Systems

Inventory systems are the methods by which businesses keep track of their stocks, goods, and services. Through these systems, managers are able to determine shortages in their goods and put in orders to replace those that have been sold, finished from the shelves, or sold out.

Physical or Periodic Method

“A period will be defined as the time interval between consecutive stock reviews. The beginning of the period is the instant after the decision to order a batch or not to order has been made. The end of the period is the instant of stocktaking, just before the decision”(Article: Management Science, Vol. 10,No.1 1963). Before the introduction of technology into accounting procedures, physical or periodic method was the primary means of tracking and taking inventory. The method is called physical because it implies just that. Inventory counting must be done by means of walking down the aisles of a store with a calculator, a list of items to be checked, then counting and recording what is seen. According to Charles Atkinson, “If you want to know your inventory level, you better take off your shoes so you can count on your toes when your fingers run out”(UOP Library Website: Inventory management review.org, 2005). This system is generally used by small stores and businesses that carry minimal inventories. The process involves counting and updating inventory periodically. For example, some companies like Footlocker and privately owned shoes stores do theirs on a semiannual or annual basis. At the end of the year, the manager will take stock of all the purchases that were made during the year and add the total to the prior year’s ending inventory to determine the total



References: An Overview of Periodic Inventory System. (University Of Phoenix Library, 2011) Retrieved from http://www.brighthub.com/office/finance/articles/83365.aspx Inventory Systems – Perpetual and Periodic Examples. University Of Phoenix Library( 2011). Retrieved from http://accontingaide.com/examples/inventory-systems-perpetual-periodic.htm Inventory Management Review. (2011). Charles Atkins on inventory management topics. Retrieved from http://www.inventorymanagementreview.org/2005/10/different_inven.htm

You May Also Find These Documents Helpful

  • Good Essays

    The principal role of inventory management systems is to ensure that stores are adequately stocked. Companies use various methods to track and report inventory. Retail companies are perhaps the best entities to examine when attempting to understand inventory management systems. The type of inventory a company has determines the method they use. Retail companies use the retail inventory method as a base system. Last-in-First-Out (LIFO) and First-in-First-Out (FIFO) are the two systems that appear to be used more frequently. Other systems used are the Just in Time or JIT method and the Average Cost method. The following paragraphs will describe different companies and the type or types of inventory systems they use. Also the advantages and disadvantages of their systems are discussed.…

    • 1893 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    Scope And Delimitations

    • 345 Words
    • 2 Pages

    An inventory control system is a process for managing and locating objects or materials. In common usage, the term may also refer to just the software components…

    • 345 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Inventory Management system provides information to efficiently manage the flow of materials , effectively utilize people and equipment , coordinate internal activities and communicate with customers . Inventory Management does not make decisions or manage operations, they provide the information to managers who make more accurate and…

    • 813 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Inventory System

    • 943 Words
    • 4 Pages

    Inventory system is an effective way for monitoring and tracking different materials that are transferred in and out of a company’s warehouse or establishment usually for accounting purposes. It is also important for a company to monitor all the transactions…

    • 943 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Inventory System

    • 419 Words
    • 2 Pages

    Inventory system is a process for managing and locating objects or materials. The objects or items represented on such a list, as a merchant’s stock of goods. It is a complete listing of merchandise or stock on hand, work in progress, raw materials, finished goods on hand, etc., made by a business concern. The raw materials from the…

    • 419 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    While there have been a number of half-and-half systems created that incorporate computer design and sales/inventory control systems using periodic update methods, the most advanced systems use a process known as perpetual inventory systems. In a perpetual inventory system, newly arriving inventory is debited to the computerized inventory account, whereas traditional ledger or half-and-half digital/traditional systems use periodic entries and a purchase account, which is a less efficient process overall and can lead to intermittent reporting inaccuracies. [1]…

    • 1703 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Ch6 Solutions

    • 13373 Words
    • 54 Pages

    CHAPTER 6 MERCHANDISING ACTIVITIES OVERVIEW OF BRIEF EXERCISES, EXERCISES, PROBLEMS, AND CRITICAL THINKING CASES Brief Exercises B. Ex. 6.1 B. Ex. 6.2 B. Ex. 6.3 B. Ex. 6.4 B. Ex. 6.5 B. Ex.…

    • 13373 Words
    • 54 Pages
    Powerful Essays
  • Good Essays

    thesis

    • 350 Words
    • 2 Pages

    Inventory systems provide a basis for recording sales, purchases. and the quantity for each item at the end of the accounting period. The two primary inventory systems are the periodic system and the perpetual system. The periodic system records the inventory only at the end of each period, leaving the balance unchanged throughout the period. The perpetual system adjusts the inventory balance each time a transaction, such as an inventory purchase or a sale, occurs.…

    • 350 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Inventory

    • 315 Words
    • 2 Pages

    Sales and Inventory system is a systematic way of handling the flow of material which will be beneficial for industries. An inventory control system is a set of hardware and software based tools that automate the process of tracking inventory. The kinds of inventory tracked with an inventory control system can include almost any type of quantifiable good, including food, clothing, books, equipment, and any other item that consumers, retailers, or wholesalers may…

    • 315 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The word 'inventory' can refer to both the total amount of goods and the act of counting them. Many companies take an inventory of their supplies on a regular basis in order to avoid running out of popular items. Others take an inventory to insure the number of items ordered matches the actual number of items counted physically. Shortages or overages after an inventory can indicate a problem with theft (called 'shrinkage' in retail circles) or inaccurate accounting practices.…

    • 555 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    ACTBAS2 Notes

    • 2015 Words
    • 31 Pages

    Periodic Inventory System Perpetual Inventory System Purchases xxx Accounts Payable Purchase of merchandise on account Merchandise Inventory Accounts Payable Purchase of merchandise on account xxx Accounts Payable Merchandise Inventory Return of merchandise xxx Accounts Receivable Cost of Sales Sales Merchandise Inventory Sale of merchandise on account xxx xx Sales Returns and Allowances Merchandise Inventory Accounts Receivable Cost of Sales Return of merchandise xxx…

    • 2015 Words
    • 31 Pages
    Satisfactory Essays
  • Powerful Essays

    This document provides guidelines for conducting annual physical inventories, and is applicable to all units that hold inventory for resale to external or internal customers. Annual physical inventories not only help ensure the accuracy of inventory balances reported in the University's financial records but also help you manage the activity in your area. While these guidelines address annual physical inventories, similar concepts apply to cycle counting, but the specific steps are different. Cycle counting is a process that uses regularly scheduled counts but does not count the entire inventory in a single event. Please contact the Controller's Office Business Operations Department at 3-0781 for guidance. The document consists of the following sections and supplemental information in the appendices.…

    • 2745 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Inventory

    • 2221 Words
    • 9 Pages

    Inventory management is an important part of a business because inventories are usually the largest expense incurred from business operations. Most companies will use an inventory management system that will track and maintain the inventory required to meet customer demand. Most systems used by companies are linked to the management or accounting information system, increasing the effectiveness of their operations…

    • 2221 Words
    • 9 Pages
    Good Essays
  • Good Essays

    Nothing

    • 815 Words
    • 4 Pages

    In the manual inventory system, inventory clerks check and balance their logbooks, index cards and compare them with the actual stocks left in the warehouse or stall. Sometimes it takes them time to balance the stock with the one in the logbook or index cards.…

    • 815 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    purpose of inventory

    • 313 Words
    • 2 Pages

    Inventory Management system provides information to efficiently manage the flow of materials , effectively utilize people and equipment , coordinate internal activities and communicate with customers . Inventory Management does not make decisions or manage operations, they provide the information to managers who make more accurate and timely decisions to manage their operations…

    • 313 Words
    • 2 Pages
    Satisfactory Essays

Related Topics