When prices fluctuate widely, the method of pricing that smooths out the effects of fluctuations is ____?
جب قیمتوں میں بڑے پیمانے پر اتار چڑھاؤ آتا ہے، تو قیمتوں کا تعین کرنے کا طریقہ جو اتار چڑھاو کے اثرات کو ہموار کرتا ہے ____ ہے؟
Answer: Weighted average
Explanation
When prices fluctuate widely, the method of pricing that smooths out the effects of fluctuations is weighted average (average cost method).
This method calculates an average cost per unit by weighing each purchase according to its quantity, thereby averaging out the impact of price changes over time.
This question appeared in
Past Papers (2 times)
Account Officer Past Papers, Syllabus, Jobs (1 times)
SPSC Past Papers (1 times)
This question appeared in
Subjects (1 times)
ACCOUNTING (1 times)
Related MCQs
- Which is the most widely used irrigation method in Pakistan______?
- According to pragmatists, which one is the most widely accepted method of education?
- Which is the most widely accepted method of education, according to the pragmatists?
- In periods of rising prices, which inventory method yields the highest gross profit?
- Which structural analysis method is widely used for complex and irregularly shaped structures?
- Identify the method that is considered one of the most widely used instructional strategies in classrooms _____?
- In a summer cloth sale, jeans prices are down from Rs 2100 to Rs 1800. What percent of the prices are down?
- T-shirt City uses a periodic inventory system. During the first year of operations, the company made four purchases of a particular product. Each purchase was for 500 units and the prices paid were $9 per unit in the first purchase, $10 per unit in the second purchase, $12 per unit in the third purchase, and $13 per unit in the fourth purchase. At the year-end, 650 of these units remained unsold. Compute the cost of goods sold under the FIFO method and LIFO method, respectively.
- The cash difference between the selling prices of an article at a profit of 4% and 6% is Rs. 3. The ratio of the two selling prices is.
- MS Word is still most widely used ____ software in the world.
