Multiple choice

If the price of material is rising, then issue of material will be the least in ______ method.

  1. FIFO

  2. LIFO

  3. average price

  4. weighted average
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A Correct answer
Explanation

As goods purchased in the beginning are issued first in FIFO method it will show the least amount. The LIFO method will show the issue at highest price; average price and weighted average methods will show in between the least and highest.

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