For this Discussion Board, please complete the following:
First in, first out (FIFO) is an inventory method that applies the costs of the first (oldest) inventory purchases to the cost of goods sold (COGS). Under this method, the first units to come in are assumed to be the first units sold.
Last in, first out (LIFO) is the opposite of the FIFO inventory costing method. In LIFO, the last units purchased or put into inventory are assumed to be the first units sold.
- There are many differences between FIFO and LIFO. Identify 2 of the differences.
- Think of a business that you recently visited. Which inventory method do you think they use, and why?