The insured value of inventory must be based on the contract or agreement signed between the insured unit or enterprise and the insurance company. A contract or agreement is generally a comprehensive property insurance policy signed by both parties and the attached comprehensive property insurance clauses. Insurable value is defined as the book balance of current assets at the time of the accident. It is clear in the comprehensive insurance clauses of property insurance that the book balance of current assets (inventory) should be recorded according to the actual cost at the time of acquisition. It is generally difficult to obtain the book balance at the time of the accident, mainly because the accident is an emergency, and the book balance of inventory in financial accounting can only be reflected at the end of the month, which generally does not reflect this financial indicator. Furthermore, the inventory is damaged to varying degrees when it is out of danger, which may be completely damaged or partially damaged; There are different physical forms when out of danger, including materials, finished products and semi-finished products (in-process). The book balance cannot reflect the balance of each kind of inventory one by one. Therefore, we believe that the insured value of inventory should be accounted according to the actual cost at the time of acquisition, so as to classify inventory and reasonably determine its insured value. We believe that the actual cost at the time of purchase should be accounted for separately according to the physical form of inventory at the time of danger. For example, the actual cost accounting of raw materials in inventory is relatively simple, which is nothing more than the payment for goods and transportation fees paid for the purchase of raw materials. The actual cost accounting of products and semi-finished products in stock is quite complicated, especially for products with many specifications and models and many processing procedures. The calculation of raw materials, labor wages and related manufacturing expenses for each variety, specification and model, each working procedure is really complicated, the operation method is quite complicated and the workload is quite large.