Tutorial:Business Academy Topic: Stock in trade Prepared by:Ing. Marcela Zlatníková Projekt Anglicky v odborných předmětech, CZ.1.07/1.3.09/ je spolufinancován Evropským sociálním fondem a státním rozpočtem České republiky.

 Is material goods which have not been used for intended purpose so far  Represent short-term tied-up capital  Consistently change their form  They are consumed at a one time basis or they are gained from the appropriate activities  In the company they balance time inconsistency among purchase, production and sale, and they make possible for these activities to happen economically.

 Material stock (enters the company and it is used there  Stock of unfinished production and semi-finished goods of own production (has been created on the premises and will be further processed there)  Stock of products (has been produced on the premises and will be sold)  Stock of goods (enters the company and will be sold)

 These are natural substances which underwent processing and are intended for one-time consumption  Each company usually needs more types of material  According to activity which the material on the premises serves to, we distinguish: 1/ basic material and raw materials – at production enter the product and form its basis 2/ auxiliary and working material – do not create the basis of the product, only contribute to the utility property of the product (dyes, stains, buttons

3/ spare parts – serve to machine repairs 4/ minor tangible assets – company does not consider it for DM, it serves to repeated use (tools, products, desks, chairs)

 Unfinished production – are products, which have undergone one or several manufacturing processes, they are no longer material, but are not finished products yet  Semi-finished goods of own production – are products with completed integrated part of manufacturing process, they may exist and be purchased separately  Products – are articles, which have undergone all the manufacturing phases as well as final technical inspection, so they may be subject of sale

 Are all possessions, which the company purchases to be sold  The company sells them to its consumers unchanged  Goods can also be own products, if they are sold in own shops

 1/ Determine costs of purchased material: negotiated price CZK ,--, costs on its transportation are CZK 2 500,--, premium at transportation is CZK 110,--  2/The company deals with sewing suits. It uses textiles, grease, buttons, threads, scissors, fixturing for cuts, spares to sewing machines

 Biňovec, K. Přehled učiva k maturitní zkoušce z ekonomiky. Fortuna, ISBN  Švarcová Jena, ing a kolektiv, Ekonomie, stručný přehled. Ing. Jena Švarcová, Ph.D., CEED nakladatelství a vydavatelství, ISBN  Klínský Petr, Munch Otto, Ekonomika pro obchodní akademie a ostatní střední školy Fortuna, 2003, ISBN