What is FIFO and Lifo?

Question

Accepted Answer

FIFO (First-In, First-Out) and LIFO (Last-In, First-Out) are inventory management methods used to track the flow of goods.

FIFO assumes that the first items purchased or produced are the first ones to be sold or used.
LIFO assumes that the last items purchased or produced are the first ones to be sold or used.
FIFO is commonly used in industries with perishable goods or where product quality may degrade over time.
LIFO is often used in industries where the cost of goods is rising, as it can result in lower taxable income.
For example, in a grocery store, FIFO would mean selling the oldest milk cartons first, while LIFO would mean selling the newest ones first.

Accepted Answer

First in first out and last in first out

Accepted Answer

Lifo last in first out

Fifo first in first out

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