Perpetual Inventory Write-offs

by AJITPAL SINGH
(SURAT)

Q: Is perpetual inventory write-offs done on quarterly basis a healthy practice or not?


A: Depends on what the inventory is. If it is a product that goes bad within 3 months, like a food product, then that could be a good time period to write it off. However, if the product is still in good shape after 3 months, it would be a bad policy...

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