Which method of pricing can be used satisfactorily in either rising or falling price situation?

Which method of pricing can be used satisfactorily in either rising or falling price situation?
  • A.
    Market price
  • B.
    Average method
  • C.
    FIFO
  • D.
    Standard price
Correct Answer: Option B
Explanation

An average method which accommodate all the prices and then divide (inform of mean) is well acceptable in either of the two situation.

You May Also Like