Days sales in inventory, also known as inventory outstanding, refer to the number of days it takes for stock to turn into sales. While the days in inventory formula may vary from sector to sector, the general rule of thumb is the lower the days sales in inventory, the more optimal inventory management is. The days […]
 Forecasting: What is Forecasting and Why is it Important for Businesses Today’s business world requires an agile strategy interpretation and an effective operational management system in order to evolve beside the rapidly changing business climate. At this stage, forecasting comes into play and enables companies to plan ahead for unexpected events. Here you can find […]
Sourcing: What Does It Mean? In the business world, many parts are working together. Manufacturers, suppliers, wholesalers, retailers, third parties, etc… Manufacturers take the raw materials and make the product. Wholesalers buy those products and sell them to retailers. Retailers sell those products to customers. This network includes different activities, people, information, and resources. Managing […]
In this article, you’ll delve into the fundamental aspects of the Total Cost Formula, an essential tool for any business to evaluate its profitability. You’ll learn what this formula is, how to calculate it, and its application in business, along with its advantages and potential limitations. Additionally, real-world examples will illustrate how this formula works, […]
A perpetual inventory system is an inventory management accounting method designed to update all the relevant information regarding the company’s accounting process. Perpetual inventory records real-time transactions that have been received or transactions related to sold stock. While this method is usually considered more efficient and handy than a periodic inventory system, it also involves updating and tracking inventory […]
