During inflation which method of pricing material issue is preferred ........

Costing - Phase (I & II) Basics of Cost Control and Analysis

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During inflation which method of pricing material issue is preferred:

First in First Out (FIFO)

Last in First Out (LIFO)

Simple Average Method

Weighted Average Method

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Explanation:

During inflation Last in First Out (LIFO) is preferred, in which the material purchased in the last lot is consumed first and thus the closing stock represents the material purchased first. According to this method, the price of the last batch of material purchased is charged for all issues of material, until all units from the last batch have been issued, after which the price of the previous batch of material purchased is charged.