INVENTORY FIGURE Meaning and
Definition
-
An inventory figure refers to a numerical representation of the quantity and value of goods, materials, or products that a company or organization has on hand and available for sale or use at a specific point in time. It is a crucial aspect of a business's financial records and provides insight into the company's overall assets and liquidity.
The inventory figure takes into account both the physical count and the financial valuation of the items held by the company. It includes various types of inventory, such as raw materials, work-in-progress, and finished goods. The figure may also incorporate other components, like spare parts, supplies, or consumables, depending on the nature of the business.
The inventory figure is typically recorded in a company's balance sheet or financial statements. It enables management and stakeholders to assess the company's ability to meet customer demand, manage production schedules, and maintain optimal levels of stock. Additionally, the inventory figure plays a pivotal role in determining the cost of goods sold (COGS) and calculating profit margins.
Accurate and up-to-date inventory figures are vital for effective inventory management, as they support various aspects of a business, including operations, sales, procurement, and financial decision-making. Continuous monitoring and control of inventory figures are crucial to identify stock discrepancies, avoid overstocking or shortages, minimize carrying costs, and maximize profitability.
Common Misspellings for INVENTORY FIGURE
- unventory figure
- jnventory figure
- knventory figure
- onventory figure
- 9nventory figure
- 8nventory figure
- ibventory figure
- imventory figure
- ijventory figure
- ihventory figure
- incentory figure
- inbentory figure
- ingentory figure
- infentory figure
- invwntory figure
- invsntory figure
- invdntory figure
- invrntory figure
- inv4ntory figure
- inv3ntory figure
Etymology of INVENTORY FIGURE
The term "inventory figure" consists of two words: "inventory" and "figure".
- "Inventory" originated from the Latin word "inventarium", which referred to a list or catalog of items. It evolved in Medieval Latin as "inventarium" or "inventarium ipsarum rerum", meaning "a list of things invented". In English, it dates back to the late 15th century and specifically refers to a detailed list of goods or property held by a business or person.
- "Figure" originates from the Latin word "figura", which means "shape" or "form". It entered Middle English as "figure" or "figuren" in the 13th century, representing a symbol or representation. Over time, its usage expanded to include numerical representations or quantities.
