ADMN 1021H Lecture Notes - Lecture 9: Tangible Property, Operating Expense, Bulk Barn

• School: Trent University
• Department: Business Administration
• Course: ADMN 1021H
• Professor: Morales Jaime

Document Summary

Inventory: tangible property held for sale (products) in the normal course business or used in producing goods (raw material, work in process) or services for sale (supplies, example. Best buy buying and selling computers inventorby: best buy buying and using computers equipment. Operating cycle the time it takes to go from cash to cash in producing revenues. Operating cycle for service company: sell services ---> collect cash -----> incur operating expenses. Merchandising company: buy products ---> sell products ---> collect cash ---> incur operating expenses. Manufacturing companies: make products ---> sell products ---> collect cash -->incur operating expense --- Perpetual inventory system : best buy, amazon, indigo. Detailed records are kept for the cost for each product sold. Records are updated continuously for purchase and sales. A physical count is done at least once a year to adjust records to actual. Cost of good determined at the end of the period.