| gen. |
inventory valuation (= stock valuation. The valuation of stocks of raw material, work in progress, and finished goods. According to Statement of Standard Accounting Practice 9, stocks should be valued at the lower of cost or net realizable value and the costs incurred up to the stage of production reached. 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. OB&M Alexander Demidov); stock valuation (In financial markets, stock valuation is the method of calculating theoretical values of companies and their stocks. The main use of these methods is to predict future market prices, or more generally, potential market prices, and thus to profit from price movement – stocks that are judged undervalued (with respect to their theoretical value) are bought, while stocks that are judged overvalued are sold, in the expectation that undervalued stocks will, on the whole, rise in value, while overvalued stocks will, on the whole, fall. WK. Valuing a stock of goods bought for manufacturing or re-sale. Found on  encyclo.co.uk Alexander Demidov) |
