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Service parts management is the main component of a complete strategic service management process that companies use to ensure that right spare part and resources are at the right place (where the broken part is) at the right time. Spare parts, are extra parts that are available and in proximity to a functional item, such as an automobile, boat ...
A spare part, spare, service part, repair part, or replacement part, is an interchangeable part that is kept in an inventory and used for the repair or refurbishment of defective equipment/units. Spare parts are an important feature of logistics engineering and supply chain management, often comprising dedicated spare parts management systems.
IAS 2 requires that those assets that are considered inventory should be recorded at the lower of cost or net realisable value. Cost not only includes the purchase cost but also the conversion costs, which are the costs involved in bringing inventory to its present condition and location, such as direct labour.
A spare part is an item of inventory used to replace failed parts. Spare Parts may also refer to: Spare Parts, by Status Quo; Spare Parts, by Servotron; Spare Parts, Slovenian film; Spare Parts, film formerly titled La Vida Robot; Spare Parts (song), by Bruce Springsteen; Spare Parts, platform video game by Electronic Arts; Spare Parts, episode ...
Inventory Turn is a financial accounting tool for evaluating inventory and it is not necessarily a management tool. Inventory management should be forward looking. The methodology applied is based on historical cost of goods sold. The ratio may not be able to reflect the usability of future production demand, as well as customer demand.
FIFO and LIFO accounting are methods used in managing inventory and financial matters involving the amount of money a company has to have tied up within inventory of produced goods, raw materials, parts, components, or feedstocks. They are used to manage assumptions of costs related to inventory, stock repurchases (if purchased at different ...
2. Inventory Ownership. Inventory ownership refers to the ownership of the inventory and when the invoice is being issued to the retailer. In vendor managed inventory, there is a number of solutions in terms of payment and transfer of ownership. [11] In the first alternative, the vendor is the owner of inventory at the premises of the customer.
IAS 16 permits two accounting models for measurement of the asset in periods subsequent to its recognition, namely the cost model and the revaluation model. [ 7 ] Under the cost model , the carrying amount of the asset is measured at cost less accumulated depreciation and eventual impairment (similar to the inventory's Lower of cost or market ...