The purpose of this research is to test and prove empirically of the influence of firm size, managerial ownership, variability of inventory, variability of cost of goods sold, current ratio and leverage to the selection method of inventory accounting. The sample in this research are trading companies and manufacturing companies listed on Indonesia Stock Exchange (IDX) from 2012 to 2015 were selected using purposive sampling method. There are 37 companies that meet the criteria, 6 companies using FIFO and the 31 companies using the average method. Tests conducted in this study include different test and hypothesis test. Different test performed using the Mann-Whitney test and hypothesis test performed by using logistic regression with enter method and significance level of 5%. The test of this research performed by help of a computer program IBM SPSS Statistics Version 22. The results from different test provides significant value over the managerial ownership, while the firm size, variability of inventory, variability of cost of goods sold, current ratio and leverage doesn’t provide significant value, so this research provides evidence that there are differences between FIFO and average method seen from managerial ownership. The results of hypothesis test indicate that only managerial ownership and variability of cost of goods sold which affect the accounting method of inventory. While the firm size, variability of inventory, current ratio and leverage doesn’t affect to the accounting method of inventory.