effects of income, cash flow and working capital of gasoline stations in Batangas City
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Chapter I
THE PROBLEM AND ITS BACKGROUND
Introduction Business is an effort primarily geared to meet the public’s needs at the required time and place and at an equitable price. As we can see nowadays, there are many established business industries found in selected areas in Batangas City. New industrial establishments and service industries are being constructed to serve the public. Today, one of the known business industries in Batangas City is gasoline stations.
Popular gasoline stations that from then until now, serves every gasoline users include Petron, Caltex and Shell in the Philippines. Gasoline product is one of the most in demand product among consumers.
Many businessmen are persuaded to engage in merchandising the said product due to its favorable return on investments. As the population rate increases, different types of machineries are being developed. This results to a rapid growth of necessity for petroleum products.
Owning a gasoline station is one of the profitable businesses. This might be the reason why many businessmen are in this same kind of business. But alongside of this are the challenges every business company has to deal with. One of those things is the right choice of inventory accounting method to be employed. Effective inventory accounting method is needed in order to provide the best service to customers, produce at maximum efficiency and manage inventories at predetermined level to control investments in inventories.
A company's inventory typically includes raw materials that will be used to make products, along with goods in the process of becoming finished products and the finished products themselves. Inventory usually comprises a significant portion of total assets.
There are three main methods for calculating inventory: Last-in, First-out (LIFO); First-in, First-out (FIFO); and Average Cost Method (AVCO). Because the cost of raw materials can change over time, even during the same accounting
Chapter I
THE PROBLEM AND ITS BACKGROUND
Introduction Business is an effort primarily geared to meet the public’s needs at the required time and place and at an equitable price. As we can see nowadays, there are many established business industries found in selected areas in Batangas City. New industrial establishments and service industries are being constructed to serve the public. Today, one of the known business industries in Batangas City is gasoline stations.
Popular gasoline stations that from then until now, serves every gasoline users include Petron, Caltex and Shell in the Philippines. Gasoline product is one of the most in demand product among consumers.
Many businessmen are persuaded to engage in merchandising the said product due to its favorable return on investments. As the population rate increases, different types of machineries are being developed. This results to a rapid growth of necessity for petroleum products.
Owning a gasoline station is one of the profitable businesses. This might be the reason why many businessmen are in this same kind of business. But alongside of this are the challenges every business company has to deal with. One of those things is the right choice of inventory accounting method to be employed. Effective inventory accounting method is needed in order to provide the best service to customers, produce at maximum efficiency and manage inventories at predetermined level to control investments in inventories.
A company's inventory typically includes raw materials that will be used to make products, along with goods in the process of becoming finished products and the finished products themselves. Inventory usually comprises a significant portion of total assets.
There are three main methods for calculating inventory: Last-in, First-out (LIFO); First-in, First-out (FIFO); and Average Cost Method (AVCO). Because the cost of raw materials can change over time, even during the same accounting