Company Name: Nike
Stock Ticker: NKE
Industry and Brief Description: NIKE Inc was incorporated in 1967
under the laws of the State of Oregon. Their principal business
activity is the design, development and worldwide marketing and
selling of athletic footwear, apparel, equipment, accessories and
services. b b
Valuation Policies: Nike uses adjusted historical cost for their
inventory valuation. “As the firm consumes the service potential of
an asset, the firm expenses the consumed portion (that is, the asset is
reduced and an expense is increased).” Additionally, Nike uses the
lower of cost or net realizable value method meaning, the inventory
is valued at the lower of cost or the amount it can sell the goods for. I
think this is the best way to value inventory because goods are
constantly being bought and sold, the prices frequently changing and
raw materials, transportation costs, etc. are included in inventory as
well.
