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CIE · IGCSE · Accounting

Inventory Valuation: FIFO and AVCO
Practice Questions

20 CIE IGCSE Accounting questions on Inventory Valuation: FIFO and AVCO, each with instant feedback and a full examiner-style mark scheme.

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✨ Revision guide includes key terms, worked examples and exam technique for Inventory Valuation: FIFO and AVCO.

Try 2 sample questions on Inventory Valuation: FIFO and AVCO

Question 1 · 1 mark · Difficulty 1/3

Which method of inventory valuation assumes that the first items purchased are the first items sold?

  1. LIFO
  2. Specific identification
  3. AVCO
  4. FIFO
Show answer & explanation
✓ Answer: DFIFO
Award 1 mark for identifying FIFO (First In, First Out) as the method where the earliest purchased inventory is assumed to be sold first. C is incorrect — AVCO uses a weighted average cost. A is incorrect — LIFO (Last In, First Out) assumes latest purchases are sold first and is not permitted under IAS 2. B is incorrect — specific identification tracks individual items, not a flow assumption.
Question 2 · 1 mark · Difficulty 2/3

Patel Trading Co. in Mumbai had the following inventory movements for Product X during March: March 1: Opening inventory 100 units at $5 each March 10: Purchased 200 units at $6 each March 20: Sold 150 units Using the FIFO method, what is the value of closing inventory?

  1. $1050
  2. $750
  3. $850
  4. $900
Show answer & explanation
✓ Answer: D$900
Award 1 mark for correct calculation. Under FIFO, the 150 units sold are valued at the oldest prices first: 100 units at $5 = $500, then 50 units at $6 = $300. Closing inventory = 150 units remaining at $6 = $900. A ($750) incorrectly values closing inventory at $5. B ($850) is a common arithmetic error. D ($1050) incorrectly includes all 200 units at $6 plus 50 at $5.
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CIE IGCSE Accounting: Inventory Valuation: FIFO and AVCO FAQ

Is Kramizo free for CIE IGCSE students preparing for Accounting?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix Inventory Valuation: FIFO and AVCO practice with other Accounting topics or even switch to a totally different CIE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the Inventory Valuation: FIFO and AVCO questions aligned to the official CIE IGCSE Accounting syllabus?
Every question is written against the published CIE IGCSE Accounting specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CIE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CIE.
How is Inventory Valuation: FIFO and AVCO typically tested on CIE IGCSE Accounting papers?
Inventory Valuation: FIFO and AVCO appears across multiple question types on real CIE IGCSE Accounting papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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