Covering standing price fluctuations of merchandise in bookkeeping
The standing price of goods ordered from a deliverer can change over time. Such fluctuations can be accounted in bookkeeping for in different ways.
Here we will cover two ways of bookkeeping:
- A practical and easily implemented method is to have the electronic data system calculate and adjust the new average standing price and set this as the new cost of the goods.
- A different method is to document sales in the same order as purchases. The goods that are delivered first will, arithmetically speaking, also be the first to be sold. This is also known as the FIFO method (first in- first out).
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