Financia Merchant Manag ement Chapter 16
Chapter 16
Objectives To Describe Major Aspects of Financial Merchandise planning and management To Explain the Cost and retail methods of Accounting To Examine Alternative Methods of Inventory Control To Integrate Dollar and Unit Merchandising Control Concepts
• To Describe Major Aspects of Financial Merchandise Planning and Management • To Explain the Cost and Retail Methods of Accounting • To Examine Alternative Methods of Inventory Control • To Integrate Dollar and Unit Merchandising Control Concepts
Financial Merchandise Management Dollar control Unit Control
• Dollar Control • Unit Control
Inventory Valuation Merchandise available for sale Cost of Goods Sold(coGs) Gross Profit · Net profit
• Merchandise Available for Sale • Cost of Goods Sold (COGS) • Gross Profit • Net Profit
Inventory Accounting Systems Retail Methods Cost Accounting System
• Retail Methods • Cost Accounting System
Cost Method Physical Inventory System Book Inventory( Perpetual) FIFO LIFO
• Physical Inventory System • Book Inventory (Perpetual) – FIFO – LIFO
Retail Method Calculate Cost Complement Calculate Deductions from retail value Convert Retail Inventory Value to Cost
• Calculate Cost Complement • Calculate Deductions from Retail Value • Convert Retail Inventory Value to Cost
Merchandise Forecasting and Budgeting Process Designating Control Units Sales Forecasting Inventory-Level Planning Reduction Planning Planning Purchases Planning Profit Margins
Planning Purchases Planning Profit Margins Reduction Planning Inventory-Level Planning Sales Forecasting Designating Control Units
Merchandise Forecasting and Budgeting Process 1. Departmentwide Classification 2. Classifications Within Departments Designating Control Units 3. Price Line classifications 4. Standard merchandise classifications
Designating Control Units 1. Departmentwide Classification 2. Classifications Within Departments 3. Price Line Classifications 4. Standard Merchandise Classifications
Merchandise Forecasting and Budgeting Process 1. External Factor Evaluation Sales Forecasting 2. Internal Factor Evaluation 3. Seasonality
Sales Forecasting 1. External Factor Evaluation 2. Internal Factor Evaluation 3. Seasonality