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

  • A LIFO
  • B FIFO
  • C Simple average
  • D Weighted average

The correct answer is B. FIFO

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

Previous question Next question