Vidyalelo
Commerce · Q85

Costing

Graduate and Post Graduate · Commerce · question 85

Q85

FIFO is ________.

A.
Fast Investment in Future Order
B.
First In First Out
Answer
C.
Fast In Fast Out
D.
Fast Issue Of Fast Order

Answer: Option B

Solution

Answer: Option B
Solution:
"FIFO" stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact oldest physical object has been tracked and sold. In other words, the cost associated with the inventory that was purchased first is the cost expensed first.