What is mean by fifo lifo

Question

Accepted Answer

FIFO and LIFO are inventory management methods. FIFO means First-In, First-Out, where the oldest items are sold first. LIFO means Last-In, First-Out, where the newest items are sold first.

FIFO is used when perishable items are involved, ensuring that older items are sold before they expire.
LIFO is used when the cost of inventory is rising, as it allows for the sale of newer, more expensive items first.
FIFO and LIFO can have different impacts on financial statements, such as inventory valuation and cost of goods sold.
For example, in a grocery store, FIFO would ensure that older produce is sold first to prevent spoilage.
In a hardware store, LIFO may be used to sell newer tools at higher prices during a period of increasing costs.

Accepted Answer

My answer was lifo is last in first out and fifo is first in first out

What is mean by fifo lifo

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