Introduction
You'll learn how to manage raw materials effectively across the business—from ordering and monitoring inventory through to valuing it correctly.
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In this lesson
- 0:00 Accounting for materials overview
- 0:44 Obtaining inventory and documentation
- 1:03 Monitoring and controlling inventory
- 1:24 Balancing inventory costs effectively
- 2:12 Valuing inventory using standard methods
About this lesson
This chapter covers the complete cycle of materials accounting: obtaining inventory and understanding the supporting documentation, monitoring stock levels to prevent waste and obsolescence, calculating the true costs of holding and ordering materials, and applying valuation methods like FIFO, LIFO, and average cost. These skills are essential for both Financial Accounting and Management Accounting, and critical for any manufacturing business managing working capital efficiently. By the end, you'll understand how to strike the right balance between having enough materials to meet production needs whilst minimising unnecessary costs and financial impact on your P&L and balance sheet.
Duration: 3m
Transcript
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