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Accounting

There are several questions that each company needs to ask itself and answer sufficiently when it comes to inventories.

• The first is when does the inventory become obsolete and how do you value the obsolete inventory? The second is how to value the inventory that is not obsolete?

• There are several methods, LIFO, FIFO, Weighted Average, Market, and Historical Cost. If you are in the retail/wholesale business, would you use the same method that you would use if you were in the manufacturing business?

• Why or why not and which method would you use?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9407341

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