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Determining the Quantity of Merchandise Inventory

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by

Tai'Kiya Kuykendall

on 13 April 2010

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Transcript of Determining the Quantity of Merchandise Inventory

Why is Merchandise Inventory Important It is the largest asset It is recorded on both the balance sheet and the income statement The Most Efficient Quantity of Inventory Businesses can fail from either too much or too little merchandise inventory and can decrease net income Excess inventory requires that you spend too much money for expensive store and warehouse space Excess inventory uses up money that could be used for other assets and on the increase of merchandise inventory when expenses increase. Excess inventory may become obsolete and unsalable
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