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

By: |Published on: Nov 30|Categories: Accounting JAMB| 0 comments

A. Market price
B. Average method
C. FIFO
D. Standard price

Correct Answer:

Option B – Average method

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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