Plant Accounts Manager Interview Questions and Answers

Inventory valuation is the process of assigning a monetary value to the items held in stock by a company.

• Inventory valuation methods include FIFO (First In, First Out), LIFO (Last In, First Out), and weighted average cost.

• The valuation method chosen can impact the company's financial statements and tax liabilities.

• Inventory valuation helps in determining the cost of goods sold and the value of ending inventory on the balance sheet.

• It is important for companies to consistently...read more

Conversion cost is the total cost incurred to convert raw materials into finished goods.

• Conversion cost includes direct labor, direct materials, and manufacturing overhead.

• Examples of conversion costs include wages for production workers, utilities for the manufacturing facility, and depreciation on production equipment.

• Conversion cost does not include costs related to selling, marketing, or administrative functions.