Description

Asset-based lending by banks to wire companies is highly dependent upon accurate valuations of the inventory (copper rod, copper wire, copper conductors, finished products, semi-finished products, fine gauges, plated and bare wire). Accurate valuation of the inventory is very critical for lender and borrower to understand the differences in computing methods for inventory valuation, such as average, FIFO, and LIFO. Many accountants and auditors do not understand the difference between weighted averages and simple average techniques.