What is inventory management and what is its bearing on profitability what is cost control?

I'll address cost control first. It's the necessary means to reduce/manage the money being attributed to unneeded out flow of money.


Inventory management is a tool that is able to accurately analyze and address cost control concerns. Such as:


1. do you have too much of an item?


2. do you have too little of an item?


3. how much of an item do you actually need to have to keep sales/production at a high level of return on investment?





There are some things that one cannot control but so much, such as basic opperating costs.


Inventory management helps out to faciliate better control of what you are more able to change at a moments notice.





Hope this helps.What is inventory management and what is its bearing on profitability what is cost control?
Cost control is simply minimizing the variable cost of making a product. Fixed cost cannot be minimized. It stays the same whether u make one product or hundred .


Inventory management is the process of recieving raw materials, storing it, keeping track of work in progress and finished goods and also the accurately tracking the cost of all finshed goods or goods that are in progress. A good Inventory management lets a company calculate cost of goods sold accurately which is an expense. Thus thers is less chance of COGS being overstated or understated . At the same time , Bad inventory management means inaccurate pricing of the products which is not healthy for a company in the long run.

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