The method of stock valuation in which the issue price is obtained by dividing the value of stock in hand by unit of stock in hand is
-
A.
FIFO -
B.
LIFO -
C.
SAP -
D.
WAP
Correct Answer: Option D
Explanation
Weighted Average Price (WAP): Under this method issues are priced at a weighted average price which is obtained by dividing the value by the unit of stock in hand. Issues will continue to be priced at this price until a new batch is received when a new weighted Average price is calculated.