Evaluation Of Inventory Valuation Methods And Its Impact On The Reported Profit Of A Firm (Study Of A Small Scale Manufacturing Firm In Umuahia)

ABSTRACT

This study is conducted to ascertain the Inventory valuation methods and its impact on the reported profit of a small scale manufacturing firm in Umuahia. This research is aimed at achieving some objective such as profit. For an effective management of acquisition of inventory, it is necessary for some yardstick to be established and budget set for the various managers ensuring that the total of all the budget is in line with the main financial objective of the company. This research was made up of some intended staffs of Ohalete (Nig) Ltd. These members of staff were those employed in three departments of the industry namely production, stores and sales department. The category of personnel is about 55 which was clearly shown in the table. In order to get the views of the various people in different stage, the research distributed the questionnaire to the various departments. Questionnaires were analyzed using percentage which was arranged in tabular form and hypothesis was later tested. The findings as established include that inventory valuations is considered on the tax liability of the company before chosen and also affects the profitability of the firm either directly or indirectly. Based on the research findings, it could be profit maximization, retention of earnings for expansion, growth in shares, or high dividend payout ratio. The research and development of the firm should be over hauled to make it more efficient, effective, dynamic, current, alive in its duties and responsibilities.