Getting started, Inventory Management

VIDEO: Inventory Management 3 - Inventory costs and valuation

BY TradeGecko 4 Oct, "17

TradeGecko has produced a series of inventory management videos, brought to you by our very own Geckos, to delve into the basics of inventory management. If you want to know what are the different types of inventory costs and valuation methods, keep watching.

Our 'Getting Started with Inventory Management' eBook answers all the questions you've had on managing inventory.

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There are various types of inventory costs. A few include ordering costs, holding costs and shortage costs. Once you understand where each of these costs are applicable to your business, the next step is to determine the best way to value your inventory. A valuation method is used to determine your business's profit. You could use the First In First-Out costing method, the Average Cost method or the Last In First Out method.

 So how do you decide which costing method is best suited to your business model? How do you ensure that you are accounting for all inventory costs? 

Our Gecko Anika, takes us through three different inventory costs and four valuation methods in the third video in our Inventory Management video series. 

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If you found that video helpful, we have good news - there are more on the way! In our next video, we'll look at how setting up a robust inventory management system will help you manage and streamline your business and inventory efficiently. Stay tuned!

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See also;

VIDEO: Inventory Management 1 - What is inventory management?

VIDEO: Inventory Management 2 - Types of inventory and purpose of holding inventory

Want to learn the basics of inventory management?

We have collated lots of tips and tricks to help you reduce costly mistakes and increase sales in this Getting Started with Inventory Management eBook.

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