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Book inventory refers to the planned quantity of merchandise that a retailer intends to have available for sale during a particular period. It is a systematic inventory plan that shows the amount of stock required to meet expected sales and maintain an appropriate level of merchandise. In retailing, maintaining the right inventory is important because excessive stock increases carrying costs and the risk of markdowns, while insufficient stock can result in lost sales and dissatisfied customers. Book inventory is generally maintained in monetary terms and is useful for planning purchases, monitoring stock levels, controlling merchandise investment, and comparing actual inventory with planned inventory. The book inventory approach helps a retailer determine how much inventory should be available at the beginning and ________ __________ ____ ______ ______ ___.
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