INVETORY VALUATION METHODS AND THEIR IMPACT ON THE COMPANY′S PROFIT GENERATION

Inventories are the assets of a company and creates her value. In this paper, we will deal with the most commonly used methods of inventory valuation (FIFO, LIFO, AC) and we will point out their impact on the company's profit generation. Confirmed hypotheses presents state that Slovak production companies use the FIFO method for valuing inventories and they have the most common type of inventories: finished products. Based on the results of inventory valuation using FIFO, LIFO, AC methods, we can state that the best results are shown by the FIFO inventory valuation method, because it realistically shows the price of inventories, which inventories are valued when consumed for consumption and corresponds to the price of inventories when acquiring (sic) 8175. In the area of inventory value, it would be appropriate to introduce a simulation tool in the inventory management in companies, which would model the results of inventory valuation by individual methods.