Clearly Canadian Beverage Corporation Inventories Analysis :: essays research papers

completely the way Canadian Beverage CorporationInventories compendiumA.As a manufacturing company, Clearly Canadian Corporation, which produces and markets natural and flavored beverage products is pass judgment to hold three kinds of inventories. These inventories are carried by Clearly Canadian in every phases (input, processing, output) in manufacturing the beverage. Inventories that are held by this company are raw(a) material inventories, working in process inventories, and finished goods inventories. As we endure, Clearly Canadian is a beverage company, the raw materials that are needed to settle the beverages are natural water, sugar, artificial coloring, etc. While after all the raw materials have been collected, the company willing stage the processing phase, means converting the raw material into finished goods, example mixing the ingredients. This phase is categorize as working in process inventories. Last but non least, the raw materials that have been proce ssed and ready to be sold in the markets are the finished goods inventories. These are the inventories that Clearly Canadian distributes and sells in get together States, Japan, Thailand, Great Britain, etcConclusion, Clearly Canadian is holds this three inventories throughout the making and marketing its beverage.BAfter we define the Clearly Canadian inventories above, we know that those inventories are very important for Clearly Canadian, therefore they have to cover it properly. To hold an inventory a company is faced with risks, where it may face some losses too. The risks that clearly Canadian has to handle include repositing embodys, opportunity costs, peripheral costs, and depreciation costs. For storage costs, the costs in this class are storage charges, storage staff, equipment maintenance, and running costs. Storage charges include take away expense, lighting, heating, refrigeration, air conditioning, etc (Lucey 1988, p.185). The company needs to pay this cost becau se by place the inventories it will need storage facilities and supporting staff.Opportunity costs will arise when the company does not choose the best alternative includes beguile on capital invested in the stock (Lucey 1988, p.185). The company could have make interest from the bank if they did not invest the money on these inventories. backing costs, which are also call peripheral cost, comes together with the storage cost that comes along with the storage costs. Peripheral cost means the cost that additional cost. Examples Audit, stocktaking, insurance, and security costs. Lastly, depreciation cost is the cost that incurred due to depreciation order of the inventories or maybe damages, which cause invaluable. Those kind of cost are deterioration, obsolescence, pilferage, and vermin damage (Lucey 1988, p.