Functions of the inventory system
The QuickBooks inventory
system is designed for businesses buying
things and selling the same things. It
tracks these parameters:
- Cost of items purchased
- Count and value of inventory items
- Cost of goods sold from inventory
- Availability of items to sell
- Listed selling price
Average cost
is always used to value items in inventory. The average is calculated on the basis of all inventory actions: purchases, removal when sold, and adjustments.
Manufacture of inventory,
by consolidation of purchased parts and
employee labor, is not directly handled by
the inventory system. Accounting for
manufacturing is possible with an assembled
system of transactions, which is presented
later in this chapter.
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