Valuation of issues and valuation of returns
Give a brief introduction of the term valuation of issues and valuation of returns?
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Valuation of issues is a complex procedure since the material might be issued out of a variety of lots which may have been purchased at different prices. Following processes are employed for this purpose: - First-in-First-out (or FIFO) - Last-in-First-out (or LIFO) - Average Price Method - Simple Average Method - Weighted Average Method - Uppermost in First out - Market Price - Particular Price - Standard Price Valuation of returns points to the material returned through the production department to stores department. This valuation is done on two basis: - At the same price at that issued - At the present price of issues
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