Explanation Of Relevant Terms In Stock

Inventory: refers to the finished products that are held for sale in the daily activities of an enterprise.

Inventory purchase cost: all reasonable and necessary expenses incurred for purchasing inventory.

It includes the purchase price, related taxes, pportation charges, loading and unloading fees, insurance premiums and other expenses that can be attributed to the purchase cost of inventory.

Inventory processing cost: refers to the manufacturing cost (indirect cost) that is generated by manual labor and in accordance with certain methods for the production of product inventory.

Manufacturing cost: refers to the indirect costs incurred by an enterprise in the production and delivery of services.

First in, first out method is a method to issue stock in advance based on the assumption that the stock in advance is issued in advance.

In this way, the inventory cost before purchase is issued before the inventory cost is purchased, thereby determining the cost of issuing inventory and ending inventory.

Weighted average method: refers to the total income inventory and the number of stocks in the beginning of this month as a weight to remove the cost of the entire inventory of the month, plus the inventory cost at the beginning of the month, calculate the average unit cost of inventory, so as to determine the inventory issuance and inventory costs.

Individual valuation method: refers to each purchase or production batch of each wholesale stock in accordance with various inventories, and calculates the cost of each wholesale stock and ending inventory separately according to the unit cost determined by the purchase or production.

Net realizable value of inventories refers to the estimated cost of inventory in the daily activities, which is estimated to be estimated at the time of completion, the estimated sales cost and the amount of the relevant taxes and fees.

Provision for depreciation in inventory refers to the formation of the difference between the cost of inventory and the net realizable value of the stock.

A single sale method: refers to the low value consumable goods, when packaging the total value of the book into the relevant cost.

55 amortization Law: refers to the low value of consumable goods, packaging at the time of the use of the first half of the book value of the book value, at the time of scrapping, the method of amortization of the other half of its book value.

Book value of stock refers to the amount of inventory cost deducted from the accumulated depreciation.