Abstract: THE EFFECT OF COST ACCOUNTING ON INVENTORY VALUATION AND CONTROL IN REAL ESTATE
This study examines the effect of cost accounting on inventory valuation and control within the real estate sector in Lagos. The objectives are to assess how cost accounting practices influence inventory valuation, evaluate their impact on inventory control, and identify the challenges faced. A survey design was employed, with data collected from 200 financial managers and accountants in real estate companies, derived using Taro Yamane's formula. A case study of a leading real estate firm in Lagos provided comprehensive insights. The reliability coefficient score was 0.86. Findings reveal that accurate cost accounting practices significantly enhance inventory valuation and control by providing detailed cost information and facilitating better decision-making. However, challenges such as complex regulations and compliance issues were identified. Recommendations include providing more training on cost accounting for real estate professionals, simplifying regulatory requirements, and developing robust inventory management systems.
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