ECONOMICS

Detailed explanation-1: -First In, First Out, commonly known as FIFO, is an asset-management and valuation method in which assets produced or acquired first are sold, used, or disposed of first. For tax purposes, FIFO assumes that assets with the oldest costs are included in the income statement’s cost of goods sold (COGS).

Detailed explanation-2: -FIFO stands for first in, first out, an easy-to-understand inventory valuation method that assumes that goods purchased or produced first are sold first. In theory, this means the oldest inventory gets shipped out to customers before newer inventory.

Detailed explanation-3: -FIFO stands for “first in, first out” and assumes the first items entered into your inventory are the first ones you sell. LIFO, also known as “last in, first out, ” assumes the most recent items entered into your inventory will be the ones to sell first.

Detailed explanation-4: -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-5: -2.2. 1 First in First out (FIFO) Method : This method of pricing the issues is based on the assumption that the materials purchased and received first in store are issued first to the job. It means the materials are issued in the order in which they are received.