O'Reilly logo

Intermediate Accounting For Dummies by Maire Loughran

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 10

Inventory Cost Flow Assumptions

In This Chapter

arrow Taking a big-picture look at inventory management

arrow Understanding the difference between merchandising and manufacturing inventory

arrow Looking at inventory valuation methods

arrow Dealing with special inventory costs

arrow Calculating the value of ending inventory

arrow Handling stale inventory

For manufacturing and merchandising businesses, inventory is probably the most significant current asset. Accounting for inventory isn’t as simple as just placing orders for merchandise, recording the value at cost, and reducing inventory balances by sales. Accountants also have to consider different cost flow assumptions and ending inventory valuation issues.

Adding to the confusion is the fact that there are different types of inventory. Some people think inventory is only the merchandise available for sale in a store. I discuss that kind of inventory (called ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required