Inventory is Evil!
Channel: Dan Strongin
Date: 2010-10-01

The second installment in a series that asks if Cost Accounting is choking business, if the most important bit of feedback for operating a business does not model what the person operating that business needs to know to make money, then why continue using it. There are other choices.

This video looks at Inventory and argues it is evil, a liability, even when necessary, not an asset. Pretending that you will get full value for inventory held is a fantasy that never happens. Inventory can only lose value, so it needs to be managed carefully. Listing it as an asset misleads businesses and leads them to make business ending decisioins. See the full articles on my blog http://managenaturally.posterous.com or on my site at http://www.managenaturally.com