5 Inventory Costing Methods to Value Your Stock

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• 5 Inventory Costing Methods to Value Your Stock

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What is inventory valuation?

• Inventory valuation is the process of assessing
  the financial value of an organizations
  inventory.
• It helps evaluate the monetary value of a
  companys inventory at the end of a financial
  period.
• Inventory valuation enables retailers to stay
  compliant with regulations and norms.

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Objectives of inventory valuation

• To gain an understanding of an organizations
  profitability
• To get a precise picture of a companys financial
  position
• To calculate gross and net profit margins

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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.

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• 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.

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• 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.

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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

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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.

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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_at_smartpoint.in

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• Thank You