Best Inventory method

by Siva
(Malaysia)

What is the best inventory method that can be used in an organization?

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Best Inventory Method
by: Anonymous

There is no "best" as in a judgment of good vs. bad. Each of the three methods, FIFO, LIFO, and Weighted Average, serve a purpose and reflect the picture of the Asset, Inventories, in a slightly different manner.

Further, under some circumstances, depending on the business, the industry and its traditions and generally accepted practices, the country involved -- one method might be less cumbersome and time consuming, and labor intensive than another. Discussion of all these issues with a trained professional (accountant, business planner, financial analyst), as well as with established business people is always in my opinion the way to go instead of impulsively flying by the seat of ones own pants as a beginner to business.

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