This study aims to analyze the factors that influence the selection of
inventory accounting methods in manufacturing companies listed on the Stock
Exchange in 2014-2017. The independent variables used in this study are
company size, inventory variability, financial leverage and capital structure.
While the dependent variable used in this study is the inventory accounting
method in accordance with PSAK NO.14 (2015), namely the average inventory
method and the FIFO inventory method. The population used in this study is a
contracted company that is listed on the Indonesia Stock Exchange for 4 years,
namely, 2014-2017. This study uses a purposive sampling method with a
population of 155 companies and a total sample of 77 companies. The results
showed that company size and financial leverage variables influence positive the
selection of inventory methods, while inventory variability and capital structure
did not affect positive the selection of inventory accounting methods.