Computer software inventory programs should provide….
August 18, 2008 4:18 am BusinessThere are several inventory valuation methods a computer software inventory program should provide. One being the first in First Out (FIFO). The way this method works is that it assumes that anything you sell from your inventory was from the first inventory you purchased. Because you may buy or replenish your inventory at different times and your purchase price may be different every time. So it may be the same item purchased at different cost (prices) making it difficult to determine the value of the remaining inventory without adopting some sort of valuation as the first in, first out Inventory valuation method.