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Which of the following method gives highest value of closing stock.

1. LIFO Method2. Moving Average Method3. FIFO Method.4. Lower of Cost or Market Value.

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Question added by Deleted user
Date Posted: 2014/08/26
Hujat Ullah Khan
by Hujat Ullah Khan , Group Financial Controller , SAED Alraeda Group

Before chosing any of the stock valuation methods you have to see that there is inflation , deflation or balace situation in the marekt for materials, labors etc.

if there is inflation,

FIFO method will give you the highest stock value and then Average method.

if there is deflation,

LIFO method will give you the highest stock value and the average menthod.

if there is balance situation which is uncommon.

then all the method will give same stock.

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

 2. Moving Average Method