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An advantage of FIFO method of stock valuation is that ____________

An advantage of FIFO method of stock valuation is that ____________
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • 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
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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