An advantage of FIFO method of stock valuation is that
It is calculated at the end of the year
Its flow of cost is in sequence with the flow of stock
It is progressive in nature
It serves as a control during inflation
Correct answer is B
One of the advantages of FIFO method is that the stock received first will be issued out first thereby reducing the problem of deterioration or obsolesence and also items are issued in order of receipt therefore, it is realistic.