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5 Inventory Costing Methods to Value Your Stock

Inventory valuation is the process of assessing the financial value of an organizationu2019s inventory. <br>It helps evaluate the monetary value of a companyu2019s inventory at the end of a financial period.<br>Inventory valuation enables retailers to stay compliant with regulations and norms.<br>

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5 Inventory Costing Methods to Value Your Stock

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  1. 5 Inventory Costing Methods to Value Your Stock

  2. What is inventory valuation? • Inventory valuation is the process of assessing the financial value of an organization’s inventory. • It helps evaluate the monetary value of a company’s inventory at the end of a financial period. • Inventory valuation enables retailers to stay compliant with regulations and norms.

  3. Objectives of inventory valuation • To gain an understanding of an organization’s profitability • To get a precise picture of a company’s financial position • To calculate gross and net profit margins

  4. Inventory costing methods The retail stock method Calculate the total cost of the stock you have for sale, minus it by its markup. The final number is your inventory cost. The specific identification method In this method, you add up the individual price of each product in your inventory. That is your inventory cost.

  5. The FIFO method Using the First In First Out method, you assume the products you purchase first are sold first. You value any remaining inventory at recent prices. The LIFO method The Last In First Out method is the opposite of the FIFO method. You assume the products you purchase last are sold first.

  6. The weighted average method You add up the costs of all goods belonging to a specific SKU and divide it by its number of units.

  7. Use SmartPOS to value inventory • SmartPOS is a world-class Point of Sale solution. • It packs a wealth of features for managing not only inventory, but sales, customers, promotions, and more. • SmartPOS is cloud-based, secure, reliable, and fast. • The software solution automates several critical retail management functions • SmartPOS lets you accurately calculate inventory value

  8. How SmartPOS performs inventory valuation • SmartPOS can integrate with a plethora of third-party applications and devices. • It can integrate with barcode scanners. • Barcode scanners allow you to quickly track inventory by pointing the scanner on the tag. • SmartPOS has a powerful in-built ending inventory calculator.

  9. How to purchase SmartPOS • Visit our site https://smartposwebcom/ to learn more • Call our office in India at +91-44-6672888 or at +91-7010989830 • Call our office in Germany at +49 (0)40 609 410 932 • Alternatively, you can email us at info@smartpoint.in

  10. Thank You

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