What is the first step in controlling expenses related to managing inventories?

The first step in controlling expenses related to managing inventories is maintaining accurate records. Having precise and up-to-date records allows management to track inventory levels, monitor usage, and identify trends in consumption. When records are well-maintained, it becomes easier to assess when to reorder supplies, which helps prevent overstocking or stockouts, both of which can be costly.

Accurate record-keeping also facilitates better budget management because it provides a clear overview of what is being spent and what is needed. This visibility is crucial for making informed decisions about purchases and minimizing waste. Without accurate records, any budgeting, audits, or training efforts may be misguided, as they rely on the accuracy of the underlying inventory data. Therefore, establishing a robust system for maintaining records lays the groundwork for effective expense control in inventory management.