2.1.2 Why Do businesses adopt FIFO?

[emb_23]

[mojomojo]

I just wrote that it assists in the valuation of the balance of stock in the end.

[LFTM]

i wrote something retarded....

What did you put?

[Albeno69]

i wrote so they can see how fast or slow stock is moving. also that its a method  of valuing the cost of goods sold that uses the cost of the oldest items in inventory first.

[emb_23]

hahah i wrote an answer when the women said 5 mins left
I said it was a consistent method and upheld consistency haha

[Rockim]

 i wrote something like its easiest and cheapest way of valuing stocks. Then i said why is was better then the 'coding system' of valuing stocks.   zero marks for me

[jake]

i wrote so they can see how fast or slow stock is moving. also that its a method  of valuing the cost of goods sold that uses the cost of the oldest items in inventory first.

i wrote that fifo assumes that the first purchase stock will be the first stock to leave the business and in applying this assumption the determination of the cost of sales expense can be quickly and easily determined, stock transaction can be easily reported in the stock card and that it saves time in comparison to the time consuming process of identifying the cost value of the individual units of stock sold....

[Chavi]

'''''''''''
Fifo allows the firm to save time on tedious and cumbersome stock valuations, by simply assuming that first in is first out . . etc for 2 marks

[mojomojo]

'''''''''''
Fifo allows the firm to save time on tedious and cumbersome stock valuations, by simply assuming that first in is first out . . etc for 2 marks

good one D:

[Chavi]

With the vcaa exams, they try to catch out weaker/tireder students who would be prone to simply giving a rote learned definition.

[Albeno69]

With the vcaa exams, they try to catch out weaker/tireder students who would be prone to simply giving a rote learned definition.

i hate vcaa after that exam

[mojomojo]

With the vcaa exams, they try to catch out weaker/tireder students who would be prone to simply giving a rote learned definition.

Yeah, thats a good thing i guess.. catch out the students with good memories and reward the intelligent ones.

[Stormer]

I wrote: It best matches the natural (out)flow of stock.

[kakar0t]

What do you guys think of this:

FIFO (first in first out) provides management with a higher level of control over their stock. Also, it instills a cross-checking mechanism where physical stocktakes can be used to verify the accuracy of the stock records.

How many marks have i lost here :S

[Akirus]

What do you guys think of this:

FIFO (first in first out) provides management with a higher level of control over their stock. Also, it instills a cross-checking mechanism where physical stocktakes can be used to verify the accuracy of the stock records.

How many marks have i lost here :S

2, most likely.