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LIFO method will be the best evaluation of stock during times of rising prices, because, we have to clear out the previously low price stocks on priority, to save future cost of same purchases
Generally We valued the stock ' Actually price or market price which ever is higher. But when market is rising condition then we should evaluated our stock in LIFO method. Because in this scenario the raw materials which has been purchased in last the cost is higher.
LAST IN FIRST OUT AS THEY WOULD INDICATE THE PRODUCTION COST REASONABLE THAT THE LAST PURCHASED ITEMS ARE ISSUED TO PRODUCTION
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