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General Accounting Discussions: Cost of Inventory

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    • CommentAuthorkinping
    • CommentTimeMay 3rd 2007
     
    Does anyone know how the manufacturers calculate the cost of inventory in the real working environment? There are many inventory costing methods (such as Absorption and Variable) and factors (such as Work-in-Process, Price and Effiency Changes of Input) impacting the cost of inventory. How do the manufactuers track down the factors that affects the cost of inventory?

    thx~~

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