First-in First-out (FIFO) Method
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Description
A method of computing the cost of inventory and the cost of goods sold based on the assumption that the first goods acquired and the first goods sold and that the ending inventory consists of the most recently acquired goods.
Concept Prerequisite
Wikipedia Reference
http://en.wikipedia.org/wiki/FIFO and LIFO accounting
Learning Material
Covered in Topic(s)
| Inventories & the COGS |
| System Design: Process costing |