Concept:Stock valuation methods determine the cost assigned to inventory or goods sold at the end of a period.
One recognized stock valuation technique is the Simple Average Price method.
Explanation:Accrual, owing, and advance are not methods of stock valuation; they relate to expenses, liabilities, or payments in accounting.
The Simple Average Price (
SAP) method is a valid stock valuation method.
Under this method, the average cost of units available for sale is calculated by dividing the total cost of goods available by the total number of units.
This average price is then applied to the units remaining in stock to determine the closing inventory value.
Because
SAP gives a single valued average cost, it is used when purchase prices do not vary significantly.
Thus, among the options given, the correct item is the Simple Average Price method.
Answer:D.
SAP