The perpetual inventory system controls inventory in order to both protect it from theft and damage and report it in the balance sheet as an asset that impacts net income. When the inventory is sold ...

An organization may categorize its inventory in three ways: raw materials that it will use to produce its goods; work in process, consisting of items in the manufacturing process but not yet complete; ...

To determine the value of ending inventory and, ultimately, margins, many retailers have stuck with an accounting practice known as the retail inventory method — in some cases for more than 100 years ...

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. Andy Smith is ...

Cost basis is the original purchase price of an asset. Tracking cost basis is key to tax-efficient investing. Many, or all, of the products featured on this page are from our advertising partners who ...

The escalating trade war between the United States and China has created deep uncertainty for U.S. companies that rely on Chinese suppliers. Retaliations in recent days by the two countries have ...

There are four types of profit margin. Of these, net profit margin is used and referred to the most. Many, or all, of the products featured on this page are from our advertising partners who ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. David Kindness is a Certified Public ...