The Impact of Inventory Turn Over and Sales Volume on Choosing of Corporate Inventory Accounting Methods

Abstract

The aim of this study for knowing the impact of inventory turnover on choosing  of corporate inventory accounting method. Results of the study shows: (1) inventory turnover or ITO and sales volume in a manner together influential significantly to the choosing of corporate inventory accounting method. this result supported by Nagel R Square of 0.565 or could means that the model can give effect to changes in the variation of  choosing of corporate inventory accounting method 56.50%. (2) ITO which is inventory turnover influential significantly to the choosing of corporate inventory accounting methods. It means the more big turnover of inventory so the more great tendency the  company for choosing a given of corporate inventory accounting methods. ( 3) Companies whose sales volume the more increase influential significantly to the choosing of corporate inventory accounting methods, this is supported by test values wald is 58 .15 > 2 or p-value 0.00 < alpha 0.05. It means the more large sales volume company , then the more great tendency of the company for choosing a given  corporate accounting  methods.

Keywords: Inventory TurnOver (ITO), and accounting methods.

DOI: 10.7176/RJFA/13-24-05

Publication date: December 31^st 2022