Why valuing stock matters
Your closing stock is an asset, and accounts value it at cost. But knowing what it is worth at retail, and the margin locked inside it, is useful beyond the books: it tells you how much you would lose if it were damaged or stolen, which sets your insurance cover.
It also helps when you apply for credit. A lender assessing your business wants to see the assets it holds, and a clear stock valuation is part of that picture.