Stock Valuation Basics — Assessment

It does not To hide it To set discounts Each unit was bought at a cost, so on-hand represents capital tied up

Cost is what you paid to acquire it; price is what you sell it for Price is the tax There is none Cost is always higher

KES 50 KES 40 KES 100 KES 60

The oldest cost is used first when stock is sold Most expensive first No cost at all A random cost

Cost of goods sold (an expense), setting gross profit A discount The supplier The inventory asset