Asked by Brandon Cannon on May 13, 2024
Verified
Describe why tracking inventory activities are necessary for a merchandising company.
Tracking Inventory
The process of monitoring the quantity, location, and status of products available within a business to manage supply levels efficiently.
Merchandising Company
A business that purchases finished products and sells them to consumers without altering the form of the goods.
- Acknowledge the importance of tracking inventory activities in merchandising companies.
Verified Answer
DC
David Cruz- AraujoMay 17, 2024
Final Answer :
Tracking merchandise activities are necessary to set prices and to manage discounts,allowances and returns for both sales and purchases.A perpetual inventory system enables a business to stock the right type and amounts of merchandise and to avoid the costs of being out-of-stock and carrying excess inventory.Most merchandisers and retailers understand the importance of managing inventory costs to get the most profit and in calculating working capital.
Learning Objectives
- Acknowledge the importance of tracking inventory activities in merchandising companies.
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