What are the disadvantages of avco method

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What are the disadvantages of AVCO method? The Purchasing Department had hoped to have a contract finalized to purchase Uzbekistan-made Imperial widgets at £57 each. The contact should have been signed on 25 May but was delayed. If the contract had been signed, then the order on 27 May would have been at the new price. Which of them is better, FIFO or AVCO and, if there is any odd results, could you explain why?

Reference no: EM13183318

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