Question

In most ERP systems, what is the default method of inventory valuation?

1. At cost
2. At sales price
3. At market value
4. None of the above

Answer 1

In most ERP systems, the default method of inventory valuation is at cost.

Step-by-step explanation:

In most ERP systems, the default method of inventory valuation is at cost. This means that the value of inventory is recorded based on the original cost of acquisition or production. The cost includes all direct costs such as purchase price or production cost, as well as indirect costs like transportation and storage.