ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An inventory valuation method that assumes stock that was purchased first, is also the first to be sold.
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Last in Last Out
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First in First Out
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Roll on Roll Out
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Pull in Pull Out
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Explanation:
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.
Detailed explanation-2: -LIFO, which stands for last in, first out, is an inventory valuation method that uses the cost of the most recent products purchased to calculate the cost of goods sold (COGS), while older inventory value is considered ending inventory on a balance sheet.
Detailed explanation-3: -The FIFO inventory method assumes that costs for the most recently purchased items are the first to be charged to the cost of goods sold.
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