Uma
asked
1
0
Answer Now
Comment
Report
3
Answers
Mitchell Edge
answered
Discussion about the coating ideas is here so that people can communicate and share their ideas. From now onwards, assignmentgeek review are there to assist all the newcomers who are conscious about things.
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below –
For any questions Request A Call Back
narahari
answered
• This method is realistic as it assumed that material is issued to production in the order of
their receipt.
• Valuation of closing stock tends to be nearer current market price.
• No unrealized profit enters into financial results.
• The method is easy to operates prices do no fluctuate very frequently.
lochan
answered
**ADVANTAGES AND DISADVANTAGES OF FIFO**
Advantages of FIFO:
• This method is realistic as it assumed that material is issued to production in the order of
their receipt.
• Valuation of closing stock tends to be nearer current market price.
• No unrealized profit enters into financial results.
• The method is easy to operates prices do no fluctuate very frequently.
Disadvantages:
• Issue price may not reflect current market price and therefore in times of rising prices,
charge to production is unduly low.
• Method may involve complex calculations if the prices change frequently.
Thanks
