An advantage of FIFO method of stock valuation is that

Accounts - Principles of Accounts

JAMB 2023

A. it is calculated at the end of the year
B. its flow of cost is in sequence with the flow of stock
C. it is progressive in nature
D. it serves as a control during inflation

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Correct Answer: Option B

Explanation

One of the advantages of FIFO method is that the stock received first will be issued out first thereby reducing the problem of deterioration or obsolesence and also items are issued in order of receipt therefore, it is realistic.

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An advantage of FIFO method of stock valuation is that

Correct Answer: Option B

Explanation

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