INVENTORY VALUATIONS

Ms-ca25 Nov, 2020Finance

Accurate accounting of inventory can make all the difference between an entity reporting a profit or incurring a loss. �Periodic physical review of inventory helps identify variances between physical and book quantities and assists in evaluating internal control on movement, accounting, and safeguarding of inventory. It also provides assurances to principals and business owners that the inventory reflected in the accounting records does not materially vary from the physical quantities. It can act as a deterrent against theft, damage, and unauthorized write-offs.�