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Chapter 14
Chapter 15
Chapter 16
Chapter 17
Chapter 18
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Chapter 26
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Chapter 28
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Chapter 28

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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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Last modified: May 21, 2004