Accounting Assignment # 2

Submitted To: Sir Abid Noor

Submitted By: Moeed Altaf

Roll Number: L1F20BBAM0049
What do you mean by inventory valuation or inventory costing
systems? What are the different ways of evaluating inventory also
express the difference between perpetual and periodic
inventory systems. 

Inventory Evaluation
Inventory evaluation is a calculation of the products in a firms inventory at the
end of an accounting period.
Ways of Evaluation Inventory:
There are 3 ways of inventory evaluation
1. FIFO
2. LIFO
3. WAC

Perpetual and Periodic Inventory:

Perpetual Inventory:
Perpetual inventory system is a method for inventory accounting that records the
sales and purchases of inventory immediately through the use of point of sale
softwares.
Periodic Inventory:
Periodic inventory system records the sales and purchases of the inventory not
continuously but at predetermined accounting intervals.