We provide an offline version of this dictionary and you can download it free now.
Home » Inventory Accounting

Definition Of Inventory Accounting:


The body of accounting that deals with valuingand accounting for changes in inventoried assets.
Changes in value can occur for a number of reasons including depreciation, deterioration, obsolescence, change in customer taste, increased demand, decreased market supply and so on.It is a requirement of GAAP that inventory be properly accounted for according to a very particular set of standards, so as to limit the potential of overstating profit by understating inventory value, and to limit the potential to overstate a company's value by overstating the value of inventory which has in fact materially depreciated in value.

Browse Law Terms By First Letter:

Home | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | Y | Z |