IMPROVING THE ACCOUNTING OF INVENTORY (MATERIAL STOCKS) IN ENTERPRISES.

Inventory (material stocks) constitutes from 30% to 90% of an enterprise’s working capital, depending on the nature of its activities. The financial and economic condition of an enterprise largely depends on the efficiency of utilizing these inventories. In every manufacturing enterprise, inventories play a crucial role in ensuring the continuous operation of the production process. Unlike fixed assets, inventories fully transfer their value to the cost of production within a single production cycle. Therefore, the mobility of working capital is directly linked to the effective use of inventories. The total amount of working capital required by an enterprise is determined by higher authorities, namely the relevant ministry.