JAMB - Accounts Principles Of Accounts (2013 - No. 16)

What type of stock valuation would a vegetable seller adopt in valuing it's product?

LIFO

FIFO

Simple average

Weighted average

Explanation

FIFO is a method of stock valuation that stands for 'First-In, First-Out'. This assumes that the first (oldest) units of stock produced or received are also the first ones that are sold. This is also suitable for perishable items

JAMB - Accounts Principles Of Accounts (2013 - No. 16)

Explanation

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