Book inventory definition
/What is Book Inventory?
Book inventory is the cost of inventory on hand, as stated in an organization's accounting records. This amount is compared to the actual inventory on hand to see if there are any discrepancies in the accounting records, which can indicate procedural or control problems that should be corrected.
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Reasons for Book Inventory Variances
Differences between book inventory and actual inventory can have a number of causes, including the following:
The theft of inventory
Inventory receipts that were not recorded in the accounting records
Inventory sales that were not recorded in the accounting records
Inventory that has been recorded using the wrong unit of measure
Inventory that has been recorded using the wrong part number
Inventory that was sent out on consignment, and removed from the accounting records