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These adjustments include any change of inventory value between now and last month, group and corporate overhead allocations, and other miscellaneous adjustments like exchange rate gains and losses.
en.wikipedia.org The typical cost of carrying inventory is at least 10.0 percent of the inventory value.
en.wikipedia.org The inventory value reported on the balance sheet is usually the historical cost or fair market value, whichever is lower.
en.wikipedia.org This sophisticated approach appeals to accountants by minimizing the variance in inventory value, and is efficient from a supply chain management perspective, concentrating effort on higher volume of use items.
en.wikipedia.org If the inventory value is fairly consistent or if the value is small, don't bother calculating this more than yearly.
www.practicalecommerce.com