When setting up inventory items, what information is important to track for better business management?

Focusing on inventory quantities and values is crucial for effective business management. This information allows a company to keep a precise account of the stock it holds, understanding not only how much inventory is available but also the financial impact of that inventory. By tracking inventory quantities, businesses can identify when to reorder stock, avoid overstocking or understocking issues, and maintain optimal inventory levels. Knowing the values of inventory is essential for financial reporting and understanding the cost of goods sold, which directly affects profitability. Accurate inventory management ultimately supports informed decision-making, enhances operational efficiency, and helps in maintaining customer satisfaction by ensuring products are available when needed.