Week 3 Discussion 1 - LIFO vs FIFO The difference of last...

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LIFO vs. FIFO The difference of last in, first out (LIFO) and first in, first out (FIFO) is both based on inventory of the company and how it is processed. “However, given a properly programmed computer, the task is inconsequential. Many businesses have a sufficient level of sophistication that inventory records are being updated as each sale is recorded at a point-of-sale terminal.” (Wainwright, 2012) Rising prices due to inflation causes higher costs of goods sold (COGS) and lower inventory prices, while in FIFO, there are lower COGS and higher valuation of inventory. FIFO is used more commonly, due to the fact that inventory circulation is easier to track and there is little devaluation of inventory (for the longer you hold inventory, the less it sells for). FIFO is one of the methods we use at work in

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