Inventory Accounting System Analysis and Design (Overview about Providing Good Service to Consumers)
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Inventory is a major asset owned by the company. Large investments invested in inventory will cause problems related to organizing costs where these costs will increase warehouse costs. Inventory is highly susceptible to damage, theft, and fraud. Inventory accounting system plays an important role in the arrangement to avoid repatriation of company assets, especially inventory. Appropriate and correct inventory accounting treatment is absolutely necessary. This is because the inventory item has a considerable influence in the financial statements, namely on the balance sheet and in determining the price of inventory in the income statement.
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