In the period of rising prices, which method of stock valuation is most appropriate?

In the period of rising prices, which method of stock valuation is most appropriate?
  • A.
    Last in First Out
  • B.
    weighted average
  • C.
    First in First Out
  • D.
    Simple average
Correct Answer: Option A
Explanation

Last in first out:when price rise it results to lower bet income because the leftover inventory might be extremely old and perhaps obsolete

You May Also Like