Accounting

Managing inventory costs in manufacturing? The specific identification method tracks each item’s actual cost from purchase to sale—no estimates, no assumptions. It’s the most accurate way to calculate the cost of goods sold, but the complexity means it only makes sense for certain operations.

When it comes to inventory valuation methods, weighted average cost (WAC) offers manufacturers a practical balance between simplicity and accuracy. WAC particularly makes sense when tracking large quantities of identical items. Understanding whether WAC aligns with your specific operation can significantly improve your inventory accounting.

Inventory carrying costs can quietly drain your profits. Knowing what these costs are—and how to reduce them—can make a big difference for your business. In this guide, we’ll explain inventory carrying cost, how to calculate it, and share simple strategies to help you save money and boost your bottom line.

Inventory write-offs help businesses remove unsellable items from their records. This article explains what write-offs are, the difference between write-offs and write-downs, and how to handle them manually or with software to keep your inventory in check.