Under which method is it assumed that old stock is sold first and that new stock remains on the shelves?

Question

Quizplus · Accepted Answer

FIFO stands for "first in, first out" and assumes that the oldest stock is sold first. This method is commonly used in accounting for inventory and assumes that the cost of goods sold is based on the cost of the oldest items in inventory. Therefore, the newest items remain on the shelves until the older items are sold.

Under Which Method Is It Assumed That Old Stock Is