ANALYSIS OF EFFECT OF OWNERSHIP STRUCTURE, COMPANY SIZE, PROFIT BEFORE TAX ,LAVERAGE RATIO AND CURRENT RATIO SELECTION OF ACCOUNTING METHOD SUPPLIES INDUSTRY SECTOR IN BASIC AND CHEMICAL LISTED IN BEI (2013-2015)

Abstract

Inventories are assets owned by the company include goods belonging to the company
with the intent to sell within a certain period of business or inventory -Items that are
still under construction or production process or raw material inventoriesuse in the production
process. The choice of method of inventory is important because every decision
has economic consequences. Conflicts of interests among economic agents can arise when
a company must choose a method which supplies should be applied. This arises because
of the differences in the economic results of each method of inventory. Selection of inventory
accounting methods in Indonesia refers Inventory Accounting Standard (SFAS) No.
14 which gives the freedom for companies to use one of the alternative methods of inventory
that is First In First Out (FIFO) and average (Average).
The object of this research is industrial and chemical sectors listed in Indonesia
Stock Exchange during the years 2013 to 2015. The sample in this study sebanya 34 companies
out of 10 companies using FIFO and the 24 companies using the average method.
Statistical analysis tools used in logistic regression with significant level of 5%.
The results showed that the structure of ownership and leverage ratios positive effect
on inventory accounting methods. The size of the company's profit before tax and the
current ratio does not affect the accounting method of inventory.
keywords: ownership structure, company size, profit before tax, leverage ratio, the current
ratio.