One of the Basic Purposes of Inventory Analysis in Manufacturing

question 98

True/False

One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to determine how large the orders to vendors should be.

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Definitions:

General Ledger

A comprehensive record of all financial transactions over the life of a company, used to prepare financial statements.

Nominal Account

An accounting ledger account that starts each new accounting period with a zero balance and ends with a closed balance to transfer to a real account.

Retained Earnings

Retained Earnings represent the cumulative amount of net income earned by a company that has not been distributed to shareholders as dividends.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired and placed into service.