Inventory Control

What is Inventory Control?

Inventory Control meaning in finance terminology / glossary / dictionary is:

The control of merchandise, materials, goods in process, finished goods, and supplies on hand by accounting and physical methods. An accounting control is effected by means of a stock or stores ledger, mechanical storage records, or a ledger account in which the quantities and/or amounts of goods received during an accounting period are added to corresponding beginning balances and amounts of goods sold or otherwise disposed of are deducted at cost based on individual identification or are calculated by various methods of averaging. Physical controls consist of various plans of buying, storing, handling, issuing, supervising, and stock taking. Stock ledger control is made more effective by physical control in the nature of a continuous check of the goods on hand.

 

reference: Glossary of Hospital Financial Terms Washington State Department of Health Accounting and Reporting Manual for Hospitals

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