What Is an Inventory Valuation?

Inventory valuation method is an accounting method that calculates the value of inventory. In Western business accounting, the most commonly used methods are first-in-first-out and last-in-first-out. In the case of stable price changes, the two methods will not have a significant impact on the company's accounting reports, but when inflation or when prices continue to change in one direction, use these two methods to value the company's inventory, Different conclusions will be made on the operation of the enterprise. ^[1]