Exploring Inventory Valuation Methods: A Comprehensive Guide to 棚卸計算法

Introduction

Inventory valuation methods are critical components of financial accounting that significantly influence a company’s financial statements. This report aims to explore various inventory valuation methods, including First-In, First-Out (FIFO), Last-In, First-Out (LIFO), and Weighted Average Cost (WAC), while also focusing on the Japanese term “棚卸計算法” (tan’ori keisanhō), which translates to “inventory valuation methods.” The purpose of this report is to provide a com