MCQ IN COMPUTER SCIENCE & ENGINEERING

Detailed explanation-1: -Working according to the LIFO principle means that the last goods to be stocked are the first goods to be removed.

Detailed explanation-2: -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-3: -The last in, first out, or LIFO (pronounced LIE-foe), accounting method assumes that sellable assets, such as inventory, raw materials, or components, acquired most recently were sold first. The last to be bought is assumed to be the first to be sold using this accounting method.

Detailed explanation-4: -FIFO is more likely to give accurate results. This is because calculating profit from stock is more straightforward, meaning your financial statements are easy to update, as well as saving both time and money. It also means that old stock does not get re-counted or left for so long it becomes unusable.

Detailed explanation-5: -The Last-In, First-Out (LIFO) method assumes that the last unit to arrive in inventory or more recent is sold first. The First-In, First-Out (FIFO) method assumes that the oldest unit of inventory is the sold first.