Birgðaaðferðir

Birgðaaðferðir, or inventory methods, refer to the various techniques used by businesses to manage and track their stock. These methods are crucial for efficient operations, accurate financial reporting, and informed decision-making. Common inventory methods include First-In, First-Out (FIFO), Last-In, First-Out (LIFO), and Weighted-Average Cost. FIFO assumes that the first items added to inventory are the first ones sold, which is generally more reflective of actual physical flow for most businesses. LIFO, on the other hand, assumes the last items added are the first sold, a method often used for its tax implications in periods of rising prices, though it does not typically reflect the physical movement of goods. The Weighted-Average Cost method calculates an average cost for all inventory items, which is then used to determine the cost of goods sold and ending inventory. The choice of birgðaaðferð can significantly impact a company's reported profitability and tax liability. Businesses must select a method and apply it consistently. Furthermore, companies may employ perpetual inventory systems, which continuously update inventory records with each transaction, or periodic inventory systems, which involve physical counts at regular intervals to determine inventory levels. Effective inventory management also involves strategies like Just-In-Time (JIT) inventory, which aims to minimize holding costs by receiving goods only as they are needed in the production process.