Inventory Control and Valuation Systems among Retail SMEs in a Developing Country: An Exploratory Study

The study seeks to examine inventory control and valuation procedures in retail SMEs. In addition, the study investigates whether the owners and managers adhere to inventory control and valuation systems among retail SMEs. Data was analyzed from 173 questionnaires that were distributed to SME owners and managers. The respondents were selected by using the simple random sampling technique. The questionnaire comprised questions based on inventory control and valuation procedures, with closed-ended questions and Likert scales. The results reveal that retail owners / managers employ inventory control procedures in their enterprise. Data was also analyzed by correlation analysis to determine the relationship between inventory valuation methods and inventory records. The LIFOM was also correlated with LIFOM income tax savings, to determine whether there were any significant correlations. The results confirm that inventory methods have a positive association with inventory methods and inventory records. Retailers also accept that the LIFOM is no longer an acceptable method used in practice. Cost of inventories was also identified and implemented by SME owners / managers. The results of the study will assist owners / managers to better manage their inventory control and valuation systems and to ensure objective reporting of inventory