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Category

Bookkeeping

13
Oct
October 13, 2021

First-in, first-out FIFO method in perpetual inventory system

By tracking the flow of inventories, FIFO impacts important metrics like profitability and the valuation of assets. The FIFO inventory method assumes that the oldest goods purchased are the first to leave the company as sales occur. The FIFO method, or First-In-First-Out, is a popular inventory management approach that ensures the oldest inventory is used...
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