inventory costing options

over the next fiscal year is considered an asset and therefore taxable. Since inventory space is costly, poor inventory management can result in the need to expand warehouse storage and can result in a decrease of profit. The main benefit of keeping high levels of inventory is that it will ensure high level of sales and customer service. This is because a company will be able to meet customer demand.

A major part of financial reporting is the determination of the cost of the ending merchandise inventory. There are fo...