Last In First Out (LIFO) – Materials and Inventory Costing Method: Learning Objectives: Define and explain last in first out (LIFO) method. Give an example of LIFO costing method What are advantages and disadvantages of LIFO method? Definition and explanation of LIFO method Example
Advantages of LIFO
Advantages of LIFO includes, LIFO recovers cost from production because actual cost of material is charged to production and LIFO is simple to operate and is very useful when there are less transactions with fairly steady prices.