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inventory profits

См.: Прибыль от запасов.



inventory profits

inventory profits - - Profits reported by manufacturing companies under traditional cost accounting systems resulting from increases in work-in-process and finished goods inventories from one accounting period to the next.

Perspective: Losses are reported when inventories decrease from one period to the next.

Usage: Inventory profits and losses are a function of the way generally accepted accounting principles (GAAP) require financial results to be stated. Although managers have no control over GAAP, this feature of GAAP provides an incentive for managers to increase work-in-process and finished goods inventories from period to period in order to increase profits. Although financial statements based on throughput accounting do not comply with GAAP, they can be used to demonstrate to managers the extent of the impact of inventory changes on profits reported under GAAP.