What is the formula used to calculate stock value for a material?

The formula to calculate the stock value for a material involves determining the total monetary worth of the materials on hand, which is achieved by multiplying the stock quantity by the material price. This means that the stock value reflects the total inventory value based on how many units of a material are available and its price per unit.

This approach allows businesses to assess the financial worth of their inventory accurately. Multiplying stock quantity by material price provides a straightforward way to evaluate the overall asset value represented by the materials in stock.

Other formulas mentioned do not yield a meaningful measure of stock value. For example, adding the quantity to the price does not reflect any correlation to the actual cost of inventory, and division would result in a price per unit rather than a total value. Thus, the multiplication approach is the correct method to determine the stock value for a material.