Close inventory valuation is an important element of any business, as it allows a company to accurately assess the value of the products they have in stock. The goal of close inventory valuation is to determine the worth of ending inventory at the end of a given period of time. Different methods can be used to value closing inventory, such as cost, retail or market pricing, or a mix thereof. Cost-based methods focus on the actual production expenses associated with the inventory, while retail, or markup, based methods are based on the estimated resale value of the goods. Market-based method takes into account current market prices and values, providing a more accurate estimate of true worth. By understanding and effectively applying the different approaches to close inventory valuation, businesses can make sure their accounts reflect the real financial position at any given time.