When we talk about inventory and its value you may hear or read the word \u201cactive market\u201d being used. What is an active market however?<\/p>\n
An active market when it comes to measuring the value of inventory essentially is the market you are expected to sell your goods. It\u2019s not the market you plan to go with your products, it\u2019s the market you are already in, you make regular sales and you can estimate a selling price over there.\u00a0<\/p>\n
The price of an active market is not an average of price of some markets if those markets also include those you are not selling your goods to. Yes, if the majority of those markets are those you sell your goods to and those markets actually define the average price, than yes, go ahead. However, if it\u2019s not the situation, you have to define your active markets more precisely and use prices used on those markets.<\/p>\n
Essentially, if you have to find for your inventory items the price of an active market you should first off define the active market for this particular item or items, define the price of the market and then deduct any expenses you would make for the sale to happen. That\u2019s what you would do with the price of an active market.<\/p>\n","protected":false},"excerpt":{"rendered":"
When we talk about inventory and its value you may hear or read the word \u201cactive market\u201d being used. What is an active market however? An active market when it comes to measuring the value of inventory essentially is the market you are expected to sell your goods. It\u2019s not the market you plan to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25,31],"tags":[],"class_list":["post-4608","post","type-post","status-publish","format-standard","hentry","category-1-basic-accounting","category-1-3-inventory"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4608","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=4608"}],"version-history":[{"count":1,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4608\/revisions"}],"predecessor-version":[{"id":4609,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4608\/revisions\/4609"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=4608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=4608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=4608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}