An Analysis of a Navy Stock Fund Inventory Valuation Model

Abstract

The Comptroller General requires federal agencies to determine inventory values in accordance with the lower of cost or market accounting principle. The Naval Supply Systems Command (NAVSUP) is proposing for inclusion into the Department of Defense Stock Fund Regulations a model that determines the value of stock fund inventories in accordance with the Comptroller General's accounting policy. This research makes two recommendations that are intended to improve the proposed NAVSUP model's degree of compliance with the lower of cost or market accounting principle and to approximate the cost of the inventory more accurately. These two recommendations are incorporated into a second model. Using sensitivity analysis techniques, this research examined the differences in final inventory values produced by the two models under varying conditions and assumptions. It was found that under certain conditions the differences in final inventory values could be material.

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Document Details

Document Type
Technical Report
Publication Date
Jun 01, 1991
Accession Number
ADA245874

Entities

People

  • Kevein R. Wheelock

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Energy and Power Technologies
  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Accuracy
  • Acquisition
  • Air Force
  • Commerce
  • Department Of Defense
  • Economic Analysis
  • Governments
  • Inventory
  • Inventory Control
  • Materials
  • Money
  • National Governments
  • Procurement
  • Security
  • Theses
  • United States
  • United States Government

Fields of Study

  • Business

Readers

  • Computational Modeling and Simulation
  • Industrial Economics
  • Logistics and Supply Chain Management.