Accounting WAEC

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?

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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