Equipment
Equipment is the physical goods needed to perform a job. It can include anything from cameras to tools, and even the simplest businesses may require a certain level of equipment to get off the ground. Companies often account for equipment as an asset instead of an expense, and it’s depreciated over time to reflect its use. The company’s camera equipment is used to make movies. It was important to get a good vantage point from which to photograph the scene.
Inventory
Inventory includes raw materials used in production and finished goods that are ready for sale. It is recorded as a current asset in small business accounting and is one of the primary sources of revenue generation for companies that manufacture and sell products. Inventories are normally valued using the last-in, first-out method or the weighted average approach.소자본 창업아이템
In product businesses, inventories are categorized into three types: raw materials or components; work-in-progress, such as partially assembled airplanes on the production line or half-assembled computers; and finished goods or merchandise, which are marketed for sale. Finished goods that are not sold are normally stored as safety stock in case of supply chain delays or shifts in demand.
Other inventory items are in transit, such as the light bulbs that a retailer carries between warehouses and retail outlets. When these bulbs fall off the shelves or break, they are known as inventory shrinkage and cost the retailer money.