Question

"Material with lowest price is issued first". This sentence is suitable to -
(A) FIFO method
(B) HIFO method
(C) LIFO method
(D) NIFO method
(Sau. Uni., S. Y., Nov., 2011)
Tans : (A) FIFO method.)​

Answer 1

A FIFO method, I think ye hona chahiye

Answer 2

FIFO METHOD

Material with lowest price is issued first. This sentence is suitable to (A) FIFO method.

GETTING TO KNOW MORE ABOUT FIFO METHOD:

* First In, First Out (FIFO) is a device of asset control and valuation wherein the belongings which are generated or received first are bought, utilised, or disposed of first.

* For tax reasons, FIFO assumes that the belongings with the oldest fees are covered withinside the price of products bought withinside the profits statement (COGS). The ultimate stock belongings are matched to the maximum these days received or synthetic belongings.

* For price waft assumptions, the FIFO method is employed. The associated fees of a product need to be recorded as an cost because it progresses thru similarly improvement levels and while very last stock gadgets are bought in production.  Under FIFO, the price of gadgets received first is taken into consideration to be regarded first