Inventory Accounting


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Related to Inventory Accounting: Inventory management

Inventory Accounting

A branch of accounting that values the inventory of companies. Inventory accounting may (or may not, depending on the tool being used) increase an inventory's value if its market price increases or if its carrying costs are low. On the other hand, it may (or many not) decrease the value if its depreciation is high or if the inventory is becoming obsolete.
References in periodicals archive ?
The IRS formerly said the method did not clearly and accurately reflect income, especially where inventory is held for long periods or its costs fluctuate significantly, The revenue procedure provides a safe harbor for using a rolling-average method of inventory accounting and taxation.
The restatement includes the correction of the inventory accounting error, which reduced 2006, 2005 and 2004 net earnings by $18.9 million, $19.3 million and $33.5 million, respectively.
The courses that lend themselves to preparing personnel to monitor quality assurance include the Petroleum Quality Assurance Course-J20, the Contracting Officer's Representative Course, and the Joint BSM-E 1-Week Inventory Accounting Course.
The "last-in, first-out" or "LIFO" method is another, equally acceptable inventory accounting method.
Formal DoD acceptance of the first BiB system was issued following completion of the testing, the initial round of training and an inventory accounting.
Higher tax rates provide an advantage to LIFO firms because taxable income under LIFO is generally lower than under other inventory accounting methods.
"The SAP implementation has given us the ability to improve our methodology for valuing inventory under the retail method of inventory accounting," Carol Schumacher, who serves as vice president of investor relations for Walmart, told analysts during a recent conference call.
Another priority is a proposal to repeal LIFO (last in first out) inventory accounting that was included in the Tax Reduction & Reform Act, which was introduced in the House late last year.
On behalf of Tax Executives Institute (TEI), I am writing to urge that the Last-In, First-Out (LIFO) inventory accounting method be retained as part of the Internal Revenue Code.
Beginning in 1994, the Inventory Accounting and Billing Module (PX06) of MFCS was put into production and operated as one of the financial control application modules of the Uniform Inventory Control Program (UICP) operating at NAVICP.
For inventory that has been paid for by the taxpayer, inventory accounting is customary (i.e., inventory is an asset when on hand and is deducted when sold).