Question

what decisions can managers make based on the information on the inventory valuation report

Answer 1

Inventory valuation is the cost that is associated with an entity's inventory at the end of the reporting period. It forms a primary part of the cost of goods sold calculation. It can also be utilised as collateral for loans. This valuation appears as the company's current asset on the balance sheet of the entity. The inventpry evaluation will show the cost of the goods that have been sold, net income and the gross profit, the working capital, the total assets, the current assets, etc.

Based on these details and reports, the manager will take steps that will in lifting the business to higher levels with more performance and profit.

Average Cost Method and FIFO (First In First Out) methods are the common methods used for evaluating the inventory of an entity. 

Answer 2

Decisions can managers make based on the information such as costs, labour and materials.

Explanation:

• Inventory valuation is linked to the goods at the end of an accounting period as inventories are large current business assets and allow to evaluate the costs of goods sold, and ultimately tour profitability.  

• The inventory valuation methods include the FIFO that is a first in and first out. LIFO i.e last in last out, HIFO, highest in and first out, average cost or weighted cost.

• Periodic methods include accounting and reporting the merchandise, the valuation report is found in current assets of the balance sheet. Shows the cost related to labor, factory, and materials. These can help decide the impacts of costs on goods sold and income taxes.

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• brainly.in/question/3487973 answered by writersparadise.