Master inventory accounting, formulas and ratios with beautiful, easy to follow examples.
The Moving Average Formula is a third way to calculate your product costs. This method eschews the use of costing layers and requires you to recalculate your costs every time a new purchase order comes in.
Depending on how you count the value of the products you’ve just sold, the amount of profit that you report can be very different. In this article we’ll take a look at the FIFO costing method, and also dig into why you may or may not be able to use its counterpart, LIFO.
If you’ve been wondering about the differences between Margin and Markup and how to calculate those figures, this is the article for you! We’ll explore the relationship between cost, price, markup, and margins.
This article will give you a general overview of inventory accounting and the related equations, formulas, and ratios critical to your business success.