What type of stock valuation would a vegetable seller adopt in valuing it’s product?
- LIFO
-
FIFO
- Simple average
- Weighted average
The correct answer is: B
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