Influence of Selected Manufacturing Firm Characteristics on Choice of Inventory Costing Method


  • Supanya Suvannasing Asia-Pacific International University
  • Paluku Kazimoto Asia-Pacific International University


Inventory Costing Methods, First-In-First-Out, Weighted Average Cost Method


The study aims to examine the influence of selected characteristics of manufacturing firms on the choice of Inventory Costing Method. The food and beverage and the steel sectors listed in the Thailand Stock Exchange from 2016 to 2018 were studied, consisting of 36 firms and 24 firms respectively. These firms adopted inventory costing methods such as First-In-First-Out, Weighted Average Cost Method, and Moving Average Cost Method, and characteristics such as firm size, inventory size, profitability, firm financial leverage, inventory turnover and current ratios were examined.  A logistic regression test was used to find the influence that firm characteristics have on inventory costing methods. The results indicate that in 2017 and 2018, a significant relationship was found between profitability, inventory turnover, and current ratio the inventory costing method used by food and beverage firms, while no statistically significant factors were found in steel sector firms.


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