A COMPARATIVE ANALYSIS OF THE IMPACT OF INVENTORY VALUATION METHODS ON FINANCIAL REPORT STATEMENT IN SOME MANUFACTURING COMPANIES
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A COMPARATIVE ANALYSIS OF THE IMPACT
OF INVENTORY VALUATION METHODS ON FINANCIAL REPORT STATEMENT IN SOME
MANUFACTURING COMPANIES
Abstract
This
research work was conducted on with special reference to the impact
inventoryvaluation methods has on financial report statements of manufacturing
companies. For a longtime now the Accounting profession has not been able to
come up with any particular technique or method to be used uniformly in valuing
inventory. This research work examined if the method used was as a result ofthe
prevailing economic circumstances. A survey research design was adopted for the
study; data collected weregotten from both the primary and secondary sources.
An infinite population of over 3000 was used and a finite population of 220.
Three hypotheses were tested at 5 percent level of significance. Tables and
percentages were employed to answer the questionnaires while the statistical
regression coefficient analysis and Z- test were used to test the hypotheses.
It was found amongst others that the prevailing economic parameter influences
the decision of choice of inventory valuation method used. The Accounting
professional bodies should try as much as possible to adopt a particular method
of inventory valuation and the weighted average method was recommended as a
method that can withstand any economic challenges
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