Determination of the cost assigned to raw materials inventory, work-in-process, finished goods, and any other inventory item. Various methods are allowed in valuing inventory including Last-In, First-Out (LIFO), First-In, First-Out (Fifo) and Weighted Average. Inventory is valued at the lower of cost or market value applied on either an item-by-item basis, a category basis, or a total basis.
Inventory Valuation
| Accounting Dictionary: Inventory Valuation |
| 5min Related Video: Inventory Valuation |
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 | Cost Accounting (business term) |
| Next-In, First-Out [N.I.F.O.] |
| Market Value (in accounting) |
Help us answer these
 | What are the Factors effecting the valuations of inventory? |
| What is the EOQ model of inventory valuation? |
| How do you get Fifo inventory valuation? |
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 | Accounting Dictionary. Dictionary of Accounting Terms. Copyright © 2005 by Barron's Educational Series, Inc. All rights reserved. Read more |
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Mentioned in
- Cost Accounting (business term)
- Next-In, First-Out [N.I.F.O.]
- Market Value (in accounting)
- Product Costing System (in accounting)
- Inventory (business term)
- Absorption Costing (in accounting)
- Base Stock Method (in accounting)
- Ceiling (in accounting)
- Net Realizable Value (in accounting)
- Specific Identification (in accounting)
- Verifiable (in accounting)
- Blockage Discount (business term)
- First-In, First-Out (FIFO) (in accounting)
- Average Cost (finance term)
