Retail operations that keep goods on hand should maintain an inventory system that will allow them to know the purchase price of the item they are reselling in order to apply the markup to the appropriate base. The system should also allow them to value their inventory on hand.

To minimize the risks of loss, theft, and obsolescence, inventory balances should be kept at a minimum. If it is estimated that the value of the inventory on hand on May 31 is greater than $25,000, the service center must report the value and a detailed listing of its inventory to the Associate Director of Financial Services by June 20 for possible inclusion in the University's financial statements. This value also must be reported to Cost Analysis and Studies as part of the annual rate package.

In the course of business, it might be necessary for the service center to maintain an inventory of supplies. To minimize the risks of loss, theft, and obsolescence, inventory balances should be kept at a minimum. If it is estimated that the value of the inventory on hand on May 31 is greater than $25,000, the service center must value its supply inventory. This value and a detailed listing must be reported by June 20 to the Associate Director of Financial Services for possible inclusion in the University's financial statements. This value also must be reported to Cost Analysis and Studies as part of the annual rate package.