1. Another way to value the use of a car for personal purposes is the cents-per-mile valuation method. 2. In the case of automobiles, you have a choice of valuation methods, and choosing the wrong one can be costly. 3. For example, with inventories this means that the FIFO valuation method is the best method to use. 4. Yet it must be the case that the two valuation methods lead to the same fair price, otherwise there is an inconsistency. 5. The question has been designed to allow discussion around the stock valuation method, and the choice of absorption or marginal cost basis. 6. Under normal circumstances this is as fair a valuation method to both parties as can be achieved. 7. Analysts say that a so-called market basket of companies is hard to assess because valuation methods differ from industry to industry. 8. And even though many of the hottest stocks have cooled, most of the former highflyers remain expensive by traditional valuation methods. 9. Call your fund manager first, and remember that you must use the valuation method you choose for as long as you hold shares in that particular fund. |
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