Iasys Technology Solutions Accountant Interview Questions and Answers

FIFO stands for First-In-First-Out. It is a method of inventory valuation.

• The cost of the first items purchased or produced is assigned to the first items sold or used.

• The cost of the ending inventory is based on the cost of the most recent purchases.

• FIFO assumes that the oldest items are sold first.

• Example: A company purchases 100 units of a product at $10 each on January 1st and 200 units at $12 each on February 1st....read more

New product cost is the total cost incurred in developing and producing a new product.

• It includes research and development costs, design costs, material costs, labor costs, and overhead costs.

• New product cost is important in determining the selling price of the product.

• It is also used to evaluate the profitability of the product.

• Examples of new product costs include the cost of developing a new software program, the co...read more