Closing stock refers to the inventory remaining within an organization at the end of an accounting period, including raw materials, work in progress, or finished goods. It plays a crucial role in determining the profitability and financial status of a company.
Commodities are raw materials or primary agricultural products that can be bought and sold, ranging from grains and metals to livestock and other goods.
An organization, usually comprising producing countries, that attempts to control the price and quantity supplied of a particular commodity, typically a raw material.
Continuous production is a manufacturing process where raw materials are constantly fed into the production system to create a standardized product.
A type of inflation caused by increasing prices, typically resulting from rising costs of production inputs such as raw materials and wages.
Direct material refers to the cost of material that can be specifically identified with the production of a product, such as wood and nails in furniture manufacturing. It does not include materials used indirectly in the production process, like gasoline for power saws used to fell trees for lumber.
Direct materials are those materials that are directly incorporated into the final product or cost unit of an organization. These raw materials are integral to the manufacturing process and can be easily traced back to the finished product.
Direct Materials Inventory represents raw materials in storage that await transfer to production, subsequently forming part of the work in progress.
Direct materials inventory refers to the raw materials that a company keeps in stock for future use in the production process. These materials are a critical part of cost accounting and inventory management.
The Direct Production Cost of Sales refers to the expenses directly attributable to the manufacturing of goods sold by a company. This includes the costs of raw materials, labor, and other expenses directly involved in production.
The extractive industry involves the extraction of raw materials, such as minerals and metals, from the earth. This includes various forms of mining to obtain resources such as copper, coal, oil, natural gas, and other valuable minerals.
A method of valuing raw materials or finished goods by using the earliest unit value for pricing issued items until all stock received at that price has been used up. This method is significant in inventory management and accounting, ensuring a logical and often tax-efficient way to evaluate inventory costs.
Industrial advertising focuses on promoting products and services used by commercial business customers in the production or distribution of other goods and services. This niche sector is vital for businesses that deal in raw materials, components, or equipment.
Products or services purchased for use in the production of other goods or services, in the operation of a business, or for resale to other consumers. Industrial products include heavy machinery, raw materials, tools, and computer equipment.
Inventory includes the raw materials, work-in-progress, and finished goods that a company has on hand at any given time. Effective inventory management is crucial for maintaining liquidity and profitability.
Manufacture refers to the process of making or fashioning products, often in large quantities, using hands or machinery. This term is commonly associated with industrial production, where raw materials are transformed into finished goods.
Manufacturing inventory refers to the parts or materials on hand, needed for the manufacturing process. Adjusting manufacturing inventory to current production needs is a critical management responsibility.
Materials represent the production supplies that are acquired by an organization as revenue expenditure from third parties. These are essential for manufacturing final products and are categorized into direct and indirect materials.
NIFO cost is a method of valuing units of raw material or finished goods issued from stock by using the next unit price at which a consignment will be received for pricing the issues.
Opening Stock represents the inventory held by an organization at the beginning of an accounting period, including raw materials, work in progress, and finished goods. It plays a crucial role in assessing the financial performance and stock levels of a company.
Raw materials are the basic materials that are used at the very beginning of a production process, essential for manufacturing final products.
Stores in accounting refer to the part of an organization where various inventories are stored, which can include stationery stocks, maintenance components, production tools, raw materials, work in progress, and finished goods.
Supply risk refers to the inherent risks associated with the unavailability or disruption of raw materials necessary for the operation of a business or project.
Vertical integration refers to a strategy where a firm takes control over several production or distribution steps involved in the creation of its product or service. This can include owning the suppliers of raw materials, the manufacturing process, and the distribution channels.
