MANAGEMENT

Detailed explanation-1: -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-2: -The FIFO method is the most popular inventory method because it’s the one that most closely matches the actual movement of inventory for most businesses. This method assumes that the first products you acquired will be the first that are sold.

Detailed explanation-3: -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-4: -Just in case (JIC) is an inventory strategy where companies keep large inventories on hand. This strategy minimizes the probability that a product will sell out of stock. A company that uses this strategy typically has difficulty predicting consumer demand or experiences large surges in demand at unpredictable times.

Detailed explanation-5: -Answer is False. A FIFO method does not follow the physical flow of goods when costing an inventory. Based on the FIFO method, the first manufactured or purchased products will be sold or issued to the customer first; here, no physical goods are considered.