A COMPARATIVE ANALYSIS OF THE IMPACT OF INVENTORY VALUATION METHODS ON FINANCIAL REPORT STATEMENT IN SOME MANUFACTURING COMPANIES IN ENUGU STATE
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A
COMPARATIVE ANALYSIS OF THE IMPACT OF INVENTORY VALUATION METHODS ON FINANCIAL
REPORT STATEMENT IN SOME MANUFACTURING COMPANIES IN ENUGU STATE
ABSTRACT
This
research work was conducted on with special reference to the impact inventory
valuation 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 of
the prevailing economic circumstances. A survey research design was adopted for
the study; data collected were gotten 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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