“Inventory Management & Valuation”

All manufacturing, merchandising, and some service businesses carry inventory. These include retail stores, restaurants, construction companies, hospitals, and many others. Think of an industry that you work in, have worked in, or are interested in. Discuss the challenges of managing and valuing the inventory.

  • How quickly does the inventory become obsolete?
  • How does obsolescence impact valuation?
  • How quickly does the inventory turnover?
  • What happens if the turnover is too fast or too slow?
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