For any company, there are two possible inventory valuation methods, LIFO and FIFO. Where LIFO stands for last in first out, FIFO, on the other hand, stands for First in first out. In the LIFO method, you sell the latest goods first, and in FIFO, you sell the oldest inventory first. For any company as compared to the LIFO method, FIFO is more logically beneficial. It is because most aged inventory is moved and utilized first in production. What is FIFO? When a company makes sales as per the…
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