PSY2102 Lecture : Basis and Techniques of Inventory Valuation
Document Summary
Learn about the different methods of inventory valuations methods and the main objectives of the inventory valuation and their techniques. Importance of inventory valuation: methods of inventory valuation, different types of inventory costs can be classified as follows. Inventory valuation is the process of determining the value of an inventory. It involves estimating the cost of goods sold and related expenses to determine how much profit can be made from stock. Inventory is the number of goods and materials a company has in its possession. It is an essential process in cost accountancy. It is used to determine the value of inventory. Inventory valuation involves a series of steps to calculate inventory value. The process begins with identifying the cost of goods sold on hand and then calculating the cost based on the quantity, unit price and sale price. Once that is done, it is calculated by multiplying this figure by the average days" supply at hand.
