Inventories Calculation is the process of determining the total value of all inventory items owned by a business. It’s a vital part of accounting, as it helps to inform decisions regarding purchasing and production needs. To calculate inventory, businesses must track the quantity and value of each item in their possession and then add those values together. This gives them an accurate picture of how much money is tied up in inventory at any given time, which provides valuable data for budgeting and forecasting. By staying on top of inventories calculation, companies can ensure they are making sound financial decisions and continuing to build their success.