The State of Inventory Accounting: an Analysis and Directions for Improvement
DOI:
https://doi.org/10.51699/ajdes.v30i.711Keywords:
inventory accounting, valuation methods, cost flow assumptions, inventory obsolescence, real-time, tracking, internal controls, transparency, technology integration, data analyticsAbstract
This article examines the state of inventory accounting practices, identifies key challenges faced by organizations, and proposes directions for improvement. The article employs a combination of literature review, industry reports, and case studies to analyze the current landscape of inventory accounting. The challenges discussed include valuation methods, cost flow assumptions, inventory obsolescence, real-time tracking, and internal control measures. The proposed improvements include enhanced transparency, technology integration, data analytics, standardization, and strengthened internal controls. By implementing these improvements, organizations can enhance the accuracy, efficiency, and transparency of inventory accounting practices, leading to improved financial reporting and better-informed decision-making.
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