Business Economic, Communication, and Social Sciences Journal (BECOSS)
Vol. 4 No. 1 (2022): BECOSS

Selection of Inventory Valuation Method Using FIFO and Weighted Averaged

Aulia Azahra (Binus University)
Rahmat Siauwijaya (Binus University)

Article Info

Publish Date
31 Jan 2022

Abstract

The research aims to analyze the factors that influence the selection of inventory valuation methods. This study employs case questions and SPSS version 24 to answer the research questions. Seventy-three manufacturing firms listed in the Indonesian stock exchange from 2010-2019 were selected with the purposive sampling method and analyzed with binary logistic regression. The results reveal that the selection of inventory valuation method affected taxes, net income, and ending inventory. Moreover, it is found that Inventory turnover and gross profit margin significantly affect inventory valuation selection methods. In contrast, current ratio and financial leverage do not significantly affect inventory valuation selection methods.

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Journal Info
Business Economic, Communication, and Social Sciences Journal (BECOSS)
Website

Abbrev

BECOSS

Publisher

Universitas Bina Nusantara

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Industrial & Manufacturing Engineering

Description

The lack of understanding of the financial capital of the creative economy regarding non-bank financial institutions limits the growth of Indonesia’s creative economy. Strategies through policies, capital owners, creative economy players and bring together capital owners with players. The capital ...