FIFO is a system that includes inventory into cost of goods sold in which the items purchased first are written off first.

Name: FIFO is a system that includes inventory into cost of goods sold in which the items purchased first are written off first.
Brand: Quizplus
Rating: 4.7 (58 reviews)

Question

Quizplus · Accepted Answer

FIFO stands for First In, First Out, which means that the first items purchased are the first items sold or written off. This system includes inventory costs into the cost of goods sold, which ultimately impacts a company's financial statements.

FIFO Is a System That Includes Inventory into Cost of Goods