ABSTRACTThis research work was conducted on with special reference to the impact inventoryvaluation methods has on financial report statements of manufacturing companies. For a longtime now the Accounting profession has not been able to come up with any particular technique or method to be used uniformly in valuing inventory. This research work examined if the method used was as a result ofthe prevailing economic circumstances. A survey research design was adopted for the study; data collected weregotten from both the primary and secondary sources. An infinite population of over 3000 was used and a finite population of 220. Three hypotheses were tested at 5 percent level of significance. Tables and percentages were employed to answer the questionnaires while the statistical regression coefficient analysis and Z test were used to test the hypotheses. It was found amongst others that the prevailing economic parameter influences the decision of choice of inventory valuation method used. The Accounting professional bodies should try as much as possible to adopt a particular method of inventory valuation and the weighted average method was recommended as a method that can withstand any economic challenges TABLE OF CONTENTSTITLE PAGE.iAPPROVAL PAGE.iiDEDICATION..iiiACKNOWLEDGMENTS.ivABSTRACT...vTABLE OF CONTENTS..viCHAPTER ONE: INTRODUCTION1.1BACKGROUND   OF   STUDY1 1.2STATEMENT OF THE   PROBLEM..4 1.3OBJECTIVES OF   STUDY...5 1.4RESEARCH   QUESTIONS.5 1.5HYPOTHESES...6 1.6SIGNIFICANCE   OF   THE   STUDY...7 1.7SCOPE OF THE STUDY..........8 1.8LIMITATION OF THE STUDY.....................................................9 1.9DEFINITION   OF   TERMS..10CHAPTER TWO:LITERATURE REVIEW2.1HISTORY PERSPECTIVE....13 2.2THE   PROBLEM   OF   INVENTORY   ..MANAGEMENT..14 2.3INVENTORY VALUATION.16 2.4INVENTORY   VALUATION   METHODS.20 REFERENCE...........................37 viiiCHAPTER THREE: RESEARCH METHODOLOGY3.1INTRODUCTION..39 3.3AREA OF THE STUDY....40 3.4POULATION   OF   THESTUDY41 3.5SAMPLE SIZE AND SAMPLINGTECHNIQUES.41 3.6INSTRUMENT   OF   DATA   COLLECTION.443.7VALIDITY OF THE INSTRUMENT .....45 3.8RELIABILITY OF INSTRUMENT .....45 3.9METHOD OF DATA COLLECTION.46 3.10METHOD   OF   DATA   ANALYSIS...46 CHAPTERFOUR:DATAPRESENTATION,ANALYSISANDINTERPRETATION4.1DATA ANALYSIS.......49 4.2TESTING OF HYPOTHESES ....66 CHAPTER  FIVE:SUMMARY  OF  FINDINGS,  RECOMMENDATIONSAND CONCLUSION5.1SUMMARY OF FINDINGS..82 5.2RECOMMENDATIONS....84 5.3CONCLUSION...........86 BIBLIOGRAPHY88 APPENDIX A......90APPENDIXB.91