Наукова стаття

The choice of the method of inventory disposal assessment and its impact on the financial performance of the entity

Dmytrenko, Alla

In the conditions of rising prices for inventories, the FIFO method provides the lowest cost of sale, which will result in the highest profit. At the same time, the valuation of inventories in the balance sheet using the FIFO method is closest to their actual cost. Weighted average cost of sales provides a more even amount of profit, is less affected by fluctuations in purchase prices than other methods. When using this method, the net profit for the month as a whole will be the lowest. Therefore, the use of the FIFO method is the most appropriate for use in enterprises. The impact of this method on the financial condition of the economic entity can be considered positive, since the balance sheet indicators characterizing the items of current assets are reflected in the value close to the market value.

Англійська

2022-12

management

Tallin: Estonia, IRETC MTÜ

Dmytrenko A.V. The choice of the method of inventory disposal assessment and its impact on the financial performance of the entity / A.V. Dmytrenko // Prospects for the development of finance in the conditions of European integration of Ukraine : monogr. – Tallin : IRETC MTÜ, 2022. – P. 176-189.

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