GCE Book Keeping 2015 Objective — Question 14
Question 14 of 40 from the General Certificate of Education (GCE) Book Keeping 2015 Objective paper, with the correct answer and a full explanation.
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An advantage of the FIFO method of stock issue is that
- A. product cost reflects current price
- B. it is cumbersome to operate
- C. it is easy to understandCorrect
- D. it allows for deterioration
Explanation
A key advantage of the FIFO method is that it is easy to understand and operate, following the logical flow of inventory usage.
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