What is FIFO &LIFO

Question

What is FIFO &LIFO

Accepted Answer

FIFO (First In First Out) and LIFO (Last In First Out) are inventory management methods used to determine the order in which goods are sold or used.

FIFO assumes that the first items purchased are the first items sold or used.
LIFO assumes that the last items purchased are the first items sold or used.
FIFO is commonly used in industries where perishable goods are sold, such as food and beverage.
LIFO is commonly used in industries where the cost of goods sold is rising, such as electronics.
Both methods have their advantages and disadvantages, and the choice between them depends on the specific needs of the business.

Accepted Answer

FIFO (First In First Out) and LIFO (Last In First Out) are inventory management methods used to determine the order in which goods are sold or used.

FIFO assumes that the first items purchased are the first items sold or used.
LIFO assumes that the last items purchased are the first items sold or used.
FIFO is commonly used in industries where perishable goods are sold, such as food and beverage.
LIFO is commonly used in industries where the cost of goods sold is rising, such as electronics.
Both methods have their advantages and disadvantages, and the choice between them depends on the specific needs of the business.FIFO (First In First Out) and LIFO (Last In First Out) are inventory management methods used to determine the order in which goods are sold or used.
- FIFO assumes that the first items purchased are the first items sold or used.
- LIFO assumes that the last items purchased are the first items sold or used.
- FIFO is commonly used in industries where perishable goods are sold, such as food and beverage.
- LIFO is commonly used in industries where the cost of goods sold is rising, such as electronics.
- Both methods have their advantages and disadvantages, and the choice between them depends on the specific needs of the business.

What is FIFO &amp;LIFO