FIFO is like a conveyor belt: the first items put on the conveyor belt come off first for use or sale, while the last items put on the conveyor belt remain there at the end of the period.

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FIFO stands for "first in, first out" and operates on the principle that the first items placed into inventory or production will be the first ones used or sold. This is typically visualized as a conveyor belt or queue, where the items at the front of the line are the ones that move forward and are processed first.

FIFO Is Like a Conveyor Belt: the First Items Put