[Snacks]

Is accounting less complicated in Canada?

Hahahaha! Yes, it's all metric

 

[Kornphlake]

We do inventory counts, among other reasons, so that we have a real time count of the inventory on hand. Since we operate JIT we need to know if we're getting close to running out so we can order more to have it in time to keep production going continuously. If the inventory gets off you might be purchasing when there's already a bunch of stuff still in the stockroom but the theoretical inventory says there's none, or you might not be purchasing becase the theoretical inventory says there's plenty but in the stockroom they're all out.

 

[JRB]

We have some issues with scrap and people misplacing, mis-shipping, and other stupid variables that create horrific variances. If we don't do at least 2 a year, we are screwed. The auditors are here for weeks after every physical inventory. I am usually a helper and I find all kinds of errors that the auditors let slide. It makes me nervous. Numbers are most often skewed in business I find, so I don't know why we ever care. Well, mostly it is to satisfy the investment board.