ppt课件-budgetingvs.inventorycontrol-californiastateuniversity.pptVIP

MSE 504, Group #2 Arnulfo Barreda Pouya Dehghani Niloofar Khatibi Michelle Milloy Curtis Pederson Mike Romiski Inventory Control - The process of managing the timing and the quantities of goods to be ordered and stocked, so that demands can be met satisfactorily and economically Budgeting - The process of planning and controlling the use of assets in business activities. Methods of Inventory Control Inventory Control Records Steps to Control Inventory Benefits of Controlling Inventory Benefits of Inventory Budgeting Inventory Budget Considerations Both deal with overall cost control and planning to use resources in appropriate ways: Niloofar Khatibi Inventory budgets allow companies or firms to avoid inventory obsolescence and wasted capitol from useless goods. industries use inventory budgets in order to make inventory decisions, and the budgets can be made for specific products produced or for specific purchasing seasons. If a company purchases too much inventory that must be sold in a specific time frame it forces the business to liquidate the inventory at much less than the full price. Budgets also help new purchasing managers make better decisions regarding which products they choose to purchase. Benefit of inventory purchasing budgeting is finding the lowest cost inventory. Curtis Pederson Inventory Budget Considerations Being conscious of the fact that the amount of stock the business requires can change the value of the spenditure After the inventory budget have been set, companies will determine the cost of goods sold for the budgeted income statement. Determine how many units it has on hand and how many units it wants at the end of the year. Direct material budget to determines the amount of additional materials that are needed to meet the projected production levels. Direct labor budget is also very important in the inventory process, as it determines the number of direct labor hours needed in order to meets the forecasted inv