The method of stock valuation in which the issue price is obtained by dividing the value of stock in hand by unit of stock in hand is?

By: |Published on: Jan 10|Categories: Accounting WAEC| 0 comments

A. FIFO
B. LIFO
C. SAP
D. WAP

Correct Answer: Option D

D. WAP

Explanation

Weighted Average Price (WAP): Under this method issues are priced at a weighted average price which is obtained by dividing the value by the unit of stock in hand. Issues will continue to be priced at this price until a new batch is received when a new weighted Average price is calculated.

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