A-LevelAccountingInventory ValuationFeb/Mar 2017Paper 1 Q221 Mark
How is the issue of inventory from stores valued when using FIFO?
AIt is calculated using the average purchase price of goods.
BIt is calculated using the price paid for the earliest delivery of goods.
CIt is the same as the current replacement cost.
DIt is the same as the most recent price paid for the goods.
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of inventory valuation within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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