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Financial Analysis, Integral Percentages - Coggle Diagram
Financial Analysis
Inventory Valuation
There are several inventory systems and among them we can mention the average cost, cost or market price, whichever is lower; first in, first out; first in, last out, etc. The most used in Panama is the average cost.
Physical inventory
Written instructions are prepared, which must be studied by all those involved in the counting and supervision of the Inventory.
Average Cost
If the prices of the products being purchased fluctuate frequently, it is very convenient to use the average cost method.
First in, last out
This method is practically new and is based on the idea that in a market where prices are continually increasing, speculative profits from inventories should not be recognized, since the products bought and sold must be replaced by others at higher prices.
First in, First out
This method assumes that the first goods purchased will be sold first and those remaining in stock will correspond to the last purchases.
Increases and Decreases
Another way to do an analysis is through the increases and decreases that occur through the comparison between fiscal years for each item.
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