Inventoryreferstotheactivitiesofenterprisesintheday-to-dayholdforthesaleoffinishedgoodsorcommodities,intheproductionprocessoftheproducts,intheproductionprocessortheprovisionofservicesusedintheprocessofmaterialormaterials.Visibleinventoryisaveryimportantbusinessassets,theproportionoflarger,sothechoiceofinventoryvaluationmethodhasamajorimpactonenterprises.Inventoryvaluationmethod,includingthespecificidentificationmethod,thefirst-infirst-out,weightedaveragemethod,movingaveragemethod,theLIFO(newguidelineshavebeencancelled).
Thisarticlefromthedefinitionofinventories,abriefaccountoftheexistingaccountingsystemprovidesseveralvaluationmethods,mainlytalkaboutdifferentinventoryvaluationmethodsofimpactoncorporateprofits,businessdecisionmakersontheinventoryvaluationmethodtounderstandandchoosetoprovideinformationanddata.