ECONOMICS

Detailed explanation-1: -2 Last in First out (LIFO) Method : This method is exactly opposite of FIFO method. It is based on the assumption that the material purchased and received last in store are issued first to the job. Under this method the cost of last lot of materials purchased is used for pricing the material issues.

Detailed explanation-2: -Last-In First-Out (LIFO) Method: The issues are priced out at the most recent batch received and continue to be charged until a new batch received is arrived into stock. It is a method of pricing the issue of material using the purchase price of the latest unit in the stock.

Detailed explanation-3: -Last in, first out (LIFO) is a method used to account for inventory. Under LIFO, the costs of the most recent products purchased (or produced) are the first to be expensed. LIFO is used only in the United States and governed by the generally accepted accounting principles (GAAP).

Detailed explanation-4: -FIFO (first in, first out) inventory management seeks to value inventory so the business is less likely to lose money when products expire or become obsolete. LIFO (last in, first out) inventory management is better for nonperishable goods and uses current prices to calculate the cost of goods sold.

Detailed explanation-5: -Highest in First Out (HIFO) Method: By this method quantities of materials are issued at the highest price of materials on hand.