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| Methods of coasting |
 Stock
Items are purchasing by different prices, you are buying one
item 10$ today and it may be bought tomorrow for 11$ and
after one week may be 12$.
Now the question is 'how much is the real cost of that item
in stock?'
Finding the real cost of each item in stock is depends on
the method of coasting and it could be Average, FIFO or
LIFO.
and selecting each method is base for calculating profit and
loss. report.
In most of other accounting software you can define only one
method for all Items but in AFG Accounting software any
Stock Item could have it's own and may be different method
of costing.
For example one item uses Average method and the another
uses FIFO in the same time.
So, by using this ability of software you can set LIFO
method for the items which has too much price changing (like
gold or some expensive items) and Average method for the
others.
In this case you have more accurate cost of items and profit
and loss. report and when you have more accurate reports you
have ability to make better decisions for your business. |
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