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A method of stock valuation is

Accounts - Principles of Accounts
JAMB 2024

A method of stock valuation is

  • A. accural
  • B. owing
  • C. advance
  • D. SAP
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Correct Answer: Option D
Explanation

The Simple Average Price (SAP) method is a stock valuation method where the average cost of all units of stock is calculated and used as the value for inventory. This method takes the total cost of goods available for sale and divides it by the total number of units to determine the average price. The average price is then multiplied by th number of units on hand to calculate the value of the inventory


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