I have chosen Amazon for my company. My company's stock ticker is
AMZN. Amazon is currently in the e-commerce retail industry.
Amazon started in 1994 in Bellevue, Washington. Amazon
participates in e-commerce retail which catalogs millions of products
from thousands of different suppliers around the world for purchase
by consumers. Amazon has pioneered one-day delivery of many of
their products through their Prime service, which is a monthly
subscription. Amazon has many regional warehouses around the
world and currently services 58 countries. By pioneering ultra-fast
shipping and delivery, Amazon has grown to be the biggest e-
commerce giant in the United States.
The inventory line item from Amazon's balance sheet is accounted
for at first-in, first-out. The valuation method is lower of cost or
market and net realizable value. I believe that lower of cost or market
is the best way to ensure that investors are receiving the most
accurate information and also takes into account the principle of
conservatism. Using first-in, first-out is the most accurate way to
account for inventory cost when it comes to time-relevant
distribution methods from their consumer ordering/fulfillment
process. There are many perishable items on Amazon's product lists
such as food, paint, chemicals, etc. Many of these have expiration
dates or shelf lives and the oldest must be fulfilled to a consumer as
soon as they are ordered to ensure that Amazon's inventory isn't
written down because of the expiration.
