Healthcare organizations have many reasons to effectively manage their inventory, including implantable device tracking, investment protection and contract compliance. An effective inventory control system must in place in order to meet clinical and financial requirements. Describe the two most commonly used inventory valuation methods. Explain how each method effects the financial statement of the organization. If you were the CFO of an organization, which method would you prefer and why?© BrainMass Inc. brainmass.com October 2, 2020, 5:35 am ad1c9bdddf
Describe the two most commonly used inventory valuation methods. Explain how each method effects the financial statement of the organization.
The two most common are LIFO and FIFO. LIFO is last in first out and it expenses the current prices in computing profit. FIFO ...
The discussion is 188 words and explains LIFO vs FIFO. The impact on the financial statements are discussed and a method is chosen with two reasons to support it.