What are some methods of valuating inventory in a healthcare organization? Why is materials management important in healthcare organization? Describe the costs of inventory associated with managing materials in a healthcare organization. Methods of valuating inventory

Strategies of valuating stock

The worth of an organization’s stock as of a sure date is set utilizing a listing valuation technique. The worth of inventory is set by including up the cash spent on buying and making ready the products on the market. First-in, first-out (FIFO), last-in, first-out (LIFO), and weighted common value are the three most used methods for appraising inventory (Simeon & John, 2018). The FIFO technique of stock valuation requires that items be offered in the identical order through which they have been initially bought or produced. The FIFO method prioritizes the sale of older stock objects. In contrast to the first-in, first-out (FIFO) technique, the LIFO technique reverses the order of when objects are used within the stock valuation course of. It presupposes that inventory is offered clockwise, beginning with probably the most not too long ago acquired or produced merchandise. Stock and Price of Items Bought (COGS) are decided utilizing the Weighted Common Price stock valuation strategy, which takes into consideration the typical value of all issues bought inside a sure time interval (Yadav et al., 2020). Usually, this strategy is employed by firms whose inventory does not expertise a lot change. Cont…