Avco Flashcards
1
Q
Advantages of AVCO
A
-The average price method is accepted by the inland revenue.
- it is simpler to calculate and easier to administer than FIFO method
2
Q
Disadvantages of AVCO
A
- When prices are rising rapidly, the average cost may be lower than the actual replacement cost.
- the price charged to production per unit, may not reflect any of the actual prices paid.
