Inventory

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inventory

[′in·vən‚tȯr·ē]
(engineering)
The amount of plastic in the heating cylinder or barrel in injection molding or extrusion.

Inventory

 

the control of the presence and condition of material values (fixed and working capital) in kind as well as monetary resources, balances in bank accounts, and accounts with debtors and creditors. Taking inventory is one of the most important methods of control over the safeguarding of socialist property, over the qualitative preservation of raw and other materials and finished goods, and over the accuracy of warehouse management and current accounting. In the USSR, taking inventory is obligatory for all state, cooperative, and public enterprises, organizations, and institutions.

Inventories may be complete or partial, planned or unexpected. A complete inventory includes checking of all resources of the enterprise and of all its accounting relations; it is held on the basis of the Statute on Accounting Reports and Balances of State, Cooperative (Except Kolkhoz), and Public Enterprises and Organizations (this statute was confirmed by the Council of Ministers of the USSR of Sept. 12, 1951, with subsequent amendments and supplements). The purpose of a complete inventory is to ensure that the bookkeeping balances as of the end of the year are real and by the same token to prove the reality of the financial results of the enterprise’s activity as shown in these balances. Such an inventory is taken also at the time of organization or liquidation of an enterprise. Partial inventories are taken to check the existence of those resources which according to their physical properties are subject to natural loss when stored; they are also taken when writing off goods that have become worthless and when hiring personnel responsible for material values. Planned inventories are taken during the whole year according to a calendar chart confirmed by the manager of the enterprise or of the economic organization. Unexpected inventories are made to prevent embezzlement and misappropriation of material or monetary resources and to establish the extent of losses in case an embezzlement has taken place. Dates and the number of inventories during the year are established with due regard to different kinds of resources.

The taking of inventories is entrusted to a commission that is appointed by the manager of the enterprise and in which the chief (senior) accountant takes part. This commission is headed by the manager of the enterprise or by his deputy. The procedure of taking the inventory is determined by ministries and government departments.

References in periodicals archive ?
unaccustomed to such rigorous determinations of inventoriable costs,
162-3, the cost of such inventoriable items is deductible in the later of the year in which they are consumed (or used) or the year in which the taxpayer actually pays for them.
The UICRs Category Two consists of costs that are not inventoriable.
Traditionally, manufacturers, under the old full absorption rules, had some flexibility in determining which indirect costs to include in their overhead pool; certain indirect costs could be excluded if they were excluded from inventoriable costs in the financial statements.
Moreover, in a footnote to the cited language, the conferees declared unambiguously that taxpayers may use "any reasonable method of apportioning labor costs between inventoriable and noninventoriable functions.
170(e)(3) and the regulations thereunder are silent about how taxpayers should determine tax basis of food, except that the donor must use as the basis of the contributed item the inventoriable carrying cost assigned to any similar item not included in closing inventory (see Regs.
This election effectively froze inventory profits by treating the purchase price it had allocated to Old Mayline's inventory as the base-year cost for inventoriable items it purchased and manufactured.
Typically, a taxpayer (merchant) will handle returns of inventoriable goods either by giving the customer a cash refund or by issuing a credit, for example, in the form of a gift card.
451-5(c) provides that a taxpayer generally may not defer advance payments for inventoriable goods beyond the end of the second tax year following the year the taxpayer receives a substantial advance payment such as a gift card sale (hence, a two-year deferral).
Specifically, we recommend that the final regulations clarify that all costs relating to the product that are not R&E expenditures will either be section 162 expenses (if the costs relate to maintaining, rather than improving, the product design) or inventoriable costs under section 263A(a)(1)(A) (if the cost related to individual units of the product).
Whether sales-based royalties are properly treated as a selling expense or an inventoriable cost has been a controversial issue that the IRS and Treasury have been working on as part of their combined Priority Guidance Plan.