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In the time Rising prices which of the following Inventory valuation method will give the highest profit for the company 1)FIFO 2)LIFO 3)AVCO

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Question added by Asad zaman , Audit/Finance , Rafaqat Baber and co
Date Posted: 2015/04/25
Anas  Dawah
by Anas Dawah , Senior Internal Auditor , Talal Abu-Ghazaleh Global (TAGI)

A..............................fifo

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

the best manner is LIFO ...... because we will use material before it price increase more

Deleted user
by Deleted user

Answer1 is the right option - FIFO.

Murtaza Sidhpur wala
by Murtaza Sidhpur wala , Accountant and Inventory Manager , Khalid -Al-Dabbus Tailoring Material Co. W.L.L

answer would be FIFO...............

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

2)>>>>>>>>>>>>>>>>>>>>>LIFO

Rizwan Khalid
by Rizwan Khalid , Chief Accountant , Promedic Saudi Arabia

2. LIFO Because always old purchases will be cheaper than the current one so offcourse it would reduce the cost of goods and finally it will boost profit.

ahsan raza
by ahsan raza , principal , saint francis degree college saria alamgir

In time of rising prices FIFO is used.

Basu Dev Pokhrel
by Basu Dev Pokhrel , Sales Executive , ABC Project Wll

Last in first out (LIFO) Because always old purchases will be cheaper than the current one so it would reduce the cost of goods.........

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