If a company does not sell all the cars that it produces the residue will be "sold into stock". The P&L will
not be charged for the cost of the materials used in producing stock and the vehicles will become an asset
at their production cost.
In subsequent years EXECUTIVE will always sell cars in stock before it sells the current year's production.
When this happens the stock will cease to be an asset since it has been turned into revenue. Consequently
the Profit and Loss will be debited with the production cost of the stock sold.
Cars in stock cost money for their upkeep. This is charged as an overhead at 15% of the value of the stock,
12 months in arrears. Over-production can seriously damage profitability because of the cost of stock
upkeep. It must therefore be controlled very tightly.