Question on: JAMB Accounting - 2022
Which of the following stock valuation method is suitable under inflationary conditions?
A
LIFO
B
simple average
C
FIFO
D
weighted average
Ask EduPadi AI for a detailed answer
Correct Option: C
Under inflationary conditions, the FIFO (First-In-First-Out) method is suitable for stock valuation, as it assumes that the oldest stock is sold first, resulting in a higher valuation of the remaining stock.
Add your answer
Please share this, thanks!
No responses