Which method of pricing can be used satisfactorily in either rising or falling price situation?

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Accounts - Principles of Accounts JAMB 2015

Which method of pricing can be used satisfactorily in either rising or falling price situation?

  • Market price
  • Average method checkmark
  • FIFO
  • Standard price

The correct answer is: B

Explanation

An average method which accommodate all the prices and then divide (inform of mean) is well acceptable in either of the two situation.
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