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INVENTORY VALUATION METHODS IN INDIAN MANUFACTURING SECTOR SMES - AN EMPIRICAL STUDY

Journal of Research in Commerce & Management

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Title INVENTORY VALUATION METHODS IN INDIAN MANUFACTURING SECTOR SMES - AN EMPIRICAL STUDY
 
Creator Lakshminarayanan Latha, .; 14/2,Yusuf Palace, Mumbai 400 016
 
Subject inventory, valuation, SMEs, manufacturing
 
Description A review of economic activity across the world in the past two decades reveals that the contribution of the SMEs towards economic growth of a country has been steadily increasing in terms of its contribution towards GDP, employment opportunity and exports. Adopting well-structured and appropriate practices in their manufacturing operations and accounting and control   functions will enable the Indian SMEs in the manufacturing sector to achieve sustained growth and profitability.  An important activity in the control function is inventory valuation. Inventory consumed in the production process amounts to greater than 50% of the total cost of the product. Hence inventory valuation is a topic of significant relevance to SMEs in the manufacturing sector. Furthermore, with the onset of GST, their current practices will not be sustainable from legal and regulatory point of view. With this background, this Study aims at (a) ascertaining the existing Inventory Valuation Methods in Indian SMEs in the manufacturing sector. (b )comparing the ideal method with the method currently used by the SME for inventory valuation to evaluate the appropriateness of the method to the industrial sector the SME belongs to. This Study has been conducted through structured interviews preceded by a Survey Questionnaire which was administered to 100 respondents selected through purposive sampling. The Study finds that majority of the respondents irrespective of the industry they were operating in, applied the FIFO method of inventory valuation. It concludes that majority of the respondents do not use inventory valuation method appropriate to the industry in which they operate
 
Publisher Abhinav-National Monthly Refereed Journal Of Research In Commerce & Management (Online ISSN 2277-1166)
 
Contributor —
 
Date 2017-12-05
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://abhinavjournal.com/journal/index.php/ISSN-2277-1166/article/view/1592
 
Source Abhinav-National Monthly Refereed Journal Of Research In Commerce & Management (Online ISSN 2277-1166); Vol 6, No 12 (2017): Abhinav-National Monthly Refereed Journal Of Research In Commerce & Management (Online ISSN 2277-1166) UGC approved; 1-14
2277-1166
 
Language eng
 
Relation http://abhinavjournal.com/journal/index.php/ISSN-2277-1166/article/view/1592/pdf_394
 
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