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Should consumption against consignment items will be considered in inventory turn over ratio because consign inventory is not the part of average inventory?

Answer:

The short answer is no.

If you consume a consignment item, you just bought it. It's not inventory turnover for you, because it's not your inventory - now it's a consumable, an asset, or a personal purchase which should not be on your books at all, except to pay the sales tax owing.

Any other treatment of it is deceitful and illegal.

First answer by Javaman1891. Last edit by Javaman1891. Contributor trust: 1 [recommend contributor ]. Question popularity: 1 [recommend question].

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