The difference between stock pricing and stock valuation

 

The difference between stock pricing and stock valuation is that the evaluation is for the end-of-period stock, and the end-period stock is evaluated at the market price or cost, whichever is less, for example, after making the inventory at the end of the year, the end-of-year stock was 2,500 units of a specific product and the cost price, i.e. the purchase price, was 5 riyals The prevailing price in the market is 4 riyals if the stock is valued at the market price because it is the lowest in order to avoid any unrealized profits or losses in the future, in application of the principle of prudence and caution.

End-of-period stock = 2500 * 4 = 20,000

Pricing

It is the ways in which products are priced inside the store and the methods of their disbursement, and this was done through several methods, and these methods are:

In the periodic inventory

Average unit price method

Method contained first spend first

The last incoming method will be spent first

In the continuous inventory

His weighted average method

Method contained first spend first

The last incoming method will be spent first

This is done by making a class card for each type of merchandise. It records the category of incoming, outgoing, and any sales and balance. You can get more details about the item card by searching on the Internet.