Methods of Valuation of Inventories

Methods of Valuation of Inventories

Given are the tactics of estimating material issues which are generally observed.

1. Net Realisable Value (NRV) method
2. Standard price method
3. Average costing technique
4. Base stock process
5. Market price technique
6. Last in, first out (LIFO) method
7. Inflated price process
8. Specific price technique
9. First in, First out (FIFO) method
10. Highest in, first out (HIFO) technique
11. Replacement value tactic

Links of Previous Main Topic:-

• Introduction to accounting and branches of accounting
• Preparation of final accounts
• Introduction of fund flow statement
• Introduction cash flow statement
• Ratio analysis significance of ratio analysis
• Fixed assets and depreciation meaning causes objectives methods and basic factor
• Cost accounting concept objectives advantages limitations general principles and cost sheet
• Job costing
• Introduction process costing
• Activity based costing introduction concept and classification
• Introduction inventory pricing and valuation

Links of Next Finance Topics:-

• Test questions inventory pricing and valuation
• Limitations of historical accounting
• Introduction to responsibility accounting
• Introduction to financial management
• Introduction and types of dividend
• Concept of cost of capital
• Capitalization meaning
• Concepts of working capital