inventory valuation

inventory valuation(stock valuation) The valuation of stocks of raw material, work in progress, and finished goods. For accounting purposes, inventories should be valued at the lower of cost or net realizable value. This effectively means that finished goods and work in progress should include both fixed and variable production costs but exclude the selling and distribution costs. In the UK valuing stocks at cost, the first-in-first-out cost, or the average cost may be used, but not the last-in-first-out cost or the next-in-first-out cost. Marginal cost may be used as a basis of stock valuation for management accounting purposes but is unacceptable for financial accounting.

• top slicing
• top up
• Toronto Stock Exchange
• tort
• total absorption costing
• total market demand
• total productive management
• total profits
• total quality management
• total return
• total standard cost
• total standard production cost
• TPM
• TQM
• tracker fund
• tracking stock
• trade
• trade agreement
• trade association
• trade barrier
• trade bill
• trade bloc
• trade credit
• trade creditor
• trade cycle