INVENTORY CONTROL - THE FINANCIAL SIDE OF THE PROBLEM

Year
1971
Author(s)
D. C. Samuelson - Price Waterhouse & Co.
Abstract
With the inception of private ownership of S.N.M., there have been new dimensions added to the field of S.N.M. inventory control. Two of these new dimensions are concerned with the financial aspects of systematic accounting for the S.N.M. inventory value and the implications of the time value of money tied up in inventories. In the past, there was little need for financial accounting of the inventory values of S.N.M. since the materials were not owned by the user and consequently did not appear on the user's balance sheet. Typically, the accounting procedures surrounding S.N.M. were oriented towards quantitative control records and systematic accumu-.. lation of processing costs on a contract basis. Similarly, the onl] historic manifestation of the recognition of time-value associated with capital represented by S.N.M. inventory was the