The Choice of the Inventory Measurement Method of Listed Company and Decision Relativity

This article is to reveal the relativity between inventory measurements attributes and decision making through analyzing the inventory measurement attributes' essential characters introduced from the new inventory standard, including measurement of historical cost, measurement of fair value, net realizable value, present value of future cash flow. Furthermore, through deeply analyzing the choice of inventory valuation method in some listed companies in China, the information and purpose of the decision can be revealed when it is applied in the inventory valuation method.