LIFO and FIFO method of inventory is used to calculate the cost of the present inventory and to find out the actual ending inventory. FIFO and LIFO have their own pros and cons. We are comparing both the methods in terms of various issues.
FIFO is an abbreviation of First In First Out, a method for organizing and manipulating a data buffer, or data stack, where the oldest entry, or ‘bottom’ of the stack, is processed first.
There are a number of inventory valuation methods that can be used according to the business requirements and managerial decisions. Inventory valuation methods are named as LIFO, FIFO and they have a negative or a positive impact on the financial performance of your
First In First Out (FIFO) – Materials and Inventory Costing Method: Learning Objectives: Define and explain FIFO method. Give an example of FIFO costing method What are advantages and disadvantages of fist in first out (FIFO) costing method? Definition and Explanation of FIFO Method