Dennis and Margaret Operate a Large Petrol Station,which Runs 24

question 15

Essay

Dennis and Margaret operate a large petrol station,which runs 24 hours a day,employs 30 people and is the busiest petrol station in the Wellington region.
They have installed a computerised perpetual inventory accounting system,but are unsure as to the difference between FIFO and WAC.
Explain the difference between FIFO and WAC,and recommend which is best for Dennis and Margaret and why.