MANAGEMENT

BUISENESS MANAGEMENT

INVENTORY MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
An inventory valuation method that assumes stock that was purchased ​first​, is also the first to be sold.
A
Last in Last Out
B
First in First Out
C
Roll on Roll Out
D
Pull in Pull Out
Explanation: 

Detailed explanation-1: -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-2: -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-3: -FIFO stands for first-in, first-out (FIFO), a popular principle of inventory valuation that many restaurants use. It’s term that that originates in financial accounting but the concept also able to inventory management. This technique assumes that the goods you purchase first are the goods you use (and sell) first.

Detailed explanation-4: -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-5: -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).

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