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The Inventory Management Practices Amongst Manufacturing SMEs in the Cape Metropole, province of the Western Cape, South Africa

The Journal of Accounting and Management

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Title The Inventory Management Practices Amongst Manufacturing SMEs in the Cape Metropole, province of the Western Cape, South Africa
 
Creator Enow, Samuel Tabot; University of western cape
Isaacs, Eslyn; University of western cape
 
Subject Inventory management, SMEs, current assets, acid test, current ratio
 
Description Financial management is one of the seven important managerial functions and is responsible for ensuring that institutions have adequate or access to financial resources to meet short-term and long-term resources to meet long-term obligations. Long-term resources are capital provided by the owner (s) and long-term loans, whilst short-term resources include cash on hand or in the bank, accounts receivable and inventory or commonly referred to as current assets. The investment in inventory is often 50% of the value of current assets and in many cases overlooked as a source of short-term funds. Considering the importance of inventory in any business, this study focused on inventory management practices in SMEs. Using a sample of 100 businesses, our research revealed that only (i) 19% always prepare inventory budgets; (ii) 21% always review inventory levels; (iii) 25% review the shelf-space allocated for the products; and (iv) 19% use computers in inventory management.
 
Publisher The Journal of Accounting and Management
 
Contributor —
 
Date 2016-09-09
 
Type Peer-reviewed Article
 
Format application/pdf
text/html
 
Identifier http://journals.univ-danubius.ro/index.php/jam/article/view/3182
 
Source The Journal of Accounting and Management; Vol 6, No 2 (2016): JAM
 
Language en
 
Rights The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.