Since the price of products continually changes due to inflation and consumer demand, valuing current inventory can be challenging. FIFO, or first in, first out, is an accounting method used to ...

Determining the value of inventory is an important part of accounting. In order to calculate the profit on a sale, a cost must be assigned to the item sold. A business that is selling large amounts of ...

FIFO accounting leads to higher profits by using oldest inventory costs first. Using FIFO can increase tax liabilities due to higher reported profits. FIFO is optimal for managing perishable goods to ...