In the period of rising prices, which method of stock valuation is most appropriate?
ECONOMICS
JAMB 2017
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: A. Last in First Out
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
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