A Comparative Analysis of the Impact of Inventory Valuation Methods on Financial Report Statement in Some Manufacturing Companies in Enugu State

A Comparative Analysis of the Impact of Inventory Valuation Methods on Financial Report Statement in Some Manufacturing Companies in Enugu State

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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Abstract on A Comparative Analysis of the Impact of Inventory Valuation Methods on Financial Report Statement in Some Manufacturing Companies in Enugu State

 

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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