Other Considerations
As well as the process of purchasing materials, manufacturing products, and selling them, other elements that a manufacturing company may need to consider can include the following:
- Theft of stock
- Donating stock (charities or promotions)
- Damaged stock
- Scrapping obsolete stock
- Revaluation of stock
The revaluation of stock items and updating price lists are covered in the next chapter of this book, which looks at retail-based businesses in more detail. The first four listed previously can all be dealt with in the same way as they all involve adjusting stock quantities.
Stocktakes and adjusting stock quantities
Periodically, a business that sells stock will do a stocktake. This simply means counting all the stock items held. The frequency with which this is done is likely to depend on the size of the business, the number of items held, and the manpower required to carry out the task.
To assist with this process, the Stocktake...
