Uma
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narahari
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• It keeps value of issuer close to the current market price.
• Unrealized price or loss is usually made using this method.
• In period or loss rising prices, higher prices of recent purchases are changed to operation
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lochan
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**ADVANTAGES AND DUSADVANTAGES OF LIFO**
Advantages:
• It keeps value of issuer close to the current market price.
• Unrealized price or loss is usually made using this method.
• In period or loss rising prices, higher prices of recent purchases are changed to operation
thus, reducing in tax saving.
Disadvantages:
• Value of closing stock may the quite different form current value.
• This method does not confirm physical flow of material.
• Number of calculations compliances the stores and increases the possibility of clerical
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