Question

Explain Inventory Control and state its objectives.

Answer 1

Explanation:

Meaning of Inventory Management:

‘Inventory refers to the stockpile of the product a firm is offering for sale and the components that make up the product.’ In short, inventory is such type of assets which will be disposed of in future in the ordinary course of the business.

In other words, ‘Inventory” is used to designate the aggregate of those items of tangible assets which are:

Held of sale in ordinary course of the business;

(ii) In the process of production for such sale; or

(iii) To be currently consumed in the production of goods or services to be available for sale.