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When prices are decreasing, what is the best option to calculate the cost of inventory? Is it FIFO, LIFO or Weighted Average Cost method?

Accounting
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Question added by Ravshanbek Abdullaev , Accountant , Fajr Al Mustaqbal General Trading LLC
Date Posted: 2014/10/12
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Muhammad Nabeeh
by Muhammad Nabeeh , Chief Accountant , Bahmani Group

LIFO as supposed but it`s not an actual way

Muhammad Sajjad
by Muhammad Sajjad , Chief Accountant , Hassan Kabbani Est. for Gen. Const. of Buildings (IKK Group of Companies)

When prices are decreasing,the best option to calculate the cost is LIFO. this method some time, mangement can implement for the specific material which cost is decreased.

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