Post Utme Unn 2020 Commerce Question 16

Practice objective / multiple choice question 16 from the 2020 Post Utme Unn Commerce examination.

Post Utme Unn 2020 Commerce Objective / Multiple Choice

Question 16 POST_UTME_UNN • 2020 • COMMERCE • objective

In a warehouse management system, the 'First-In-First-Out' (FIFO) inventory valuation method is used. What is the primary advantage of using FIFO?

Correct Answer A. It ensures that the oldest inventory items are sold first.

B. It allows for the valuation of inventory items based on their current market price.

C. It simplifies the process of tracking inventory levels.

D. It reduces the risk of inventory obsolescence.

Correct Answer

Correct Option:

It ensures that the oldest inventory items are sold first.

This is Post Utme Unn 2020 Commerce Question 16. It is one of the objective questions from the 2020 Post Utme Unn Commerce examination.

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