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When closing stock that is over valued, what would its effect on profit? 1. Increase in Profit 2. Decrease in Profit 3. No effect on Profit?

Cost Accounting
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Date Posted: 2013/06/20
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Abdul Rahim Said Rahim
by Abdul Rahim Said Rahim , Senior Executive - Business Development , Al Ruwais Plastic Products Trading LLC

Overcasting closing stock means overcasting of Gross Profit and overcasting Gross Profit means overcasting of Net Profit.

walid mohamed sherif
by walid mohamed sherif , Chief Of Managerial Accounting , AL Yamamah Steel Industries

stock is under current assets& definitley increasing in current assets will be reflected on net profit but this over valued will decrease the marginal profit in the futuer when company is going to sell this stock by the increasing in COGS account .1

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