Inventory Accounting

Inventory Accounting is the process of valuing and managing inventory within the financial records of an organization. It involves tracking the cost of inventory purchased and sold, as well as valuing the remaining inventory. Different accounting methods, such as FIFO (First-In, First-Out) and LIFO (Last-In, First-Out), can impact the reported financial health of the company. Proper inventory accounting is essential for accurate financial reporting and operational planning.