The objective of inventory tracking is to allocate the cost of goods available for sale between the cost of units sold and the cost of unsold inventory.

Question

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The objective of inventory tracking is to accurately determine the cost of goods sold and the cost of unsold inventory. This is important for financial reporting and also helps businesses make informed decisions about their inventory management. By allocating costs between sold and unsold inventory, businesses can determine their gross profit and ultimately their net income.

The Objective of Inventory Tracking Is to Allocate the Cost