Home  Journals  International Accounting  27(369) - 2015 July

Developing the method for calculating the average period of turnover of the entity's inventories-in-progress

Received: 27 May 2014

Received in revised form: 2 June 2014

Accepted: 17 June 2014

Available online: 26 August 2015

Subject Heading: COST ACCOUNTING AND CALCULATION OF VALUE

JEL Classification: 

Pages: 25-35

The average period of turnover of the entity's inventories-in-progress is basically regarded as the ratio of the average value of inventories-in-progress times the period duration and the cost for the period in question. This methodological approach gives a computation formula only, but fails to establish functional relation between the average time for turnover of the entity's inventories-in-progress and indicators that influence this time. The proposed technique allows calculating the average inventory-in-progress turnover period on the basis of the entity's operational management accounting data. It also enables to identify factors influencing the duration of the average inventories-in-progress turnover period and find resources and reserves to reduce it.

Keywords: inventories, entity, turnover, turnover period, work-in-progress

References:

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4. Sheremet A.D. Analiz finansovo-khozyaistvennoi deyatel'nosti [Analysis of financial and economic activities]. Moscow, IPB-BINFA Publ., 2005, 310 p.

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ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

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