Inventories and Retail Operations
Accounting Fundamentals Series
Dr Hercules Bantas
Published by the Reluctant Geek
Copyright Hercules Bantas 2012
Retailer businesses trade in tangible products and require specific accounting procedures to deal with the stockpiles of items they sell. Understanding the ebb and flow of the inventory is vital to understanding how a retail business is trading, which means that the firm's accounting system must be able to answer a variety of questions - how much stock is in the warehouse, how much it cost, and how much it is worth, amongst others. Retail operations and the accounting tools used to deal with them are the focus of this study guide. The discussion begins with inventory control methods, before moving on to examine accounting for retail operations, and cost flow methods.