Question

what is the difference between FIFO and moving average costing methods in valuing raw materials inventory.?​

Answer 1

Explanation:

In real world, generally price of the item rises over time, so products that come into inventory earlier have lower cost than newer ones. That's why using FIFO, valuation rate generally shows higher value compared to moving average, and hence higher gross profit and net income

hope it helps you! pls mark me as brainlist