how lifo method is different from fifo method ?

Accounting Aug 13, 2020

Expert Solution

LIFO (Last In First Out) and FIFO (First In First Out) are different of each other. In LIFO method it is assumed that the most recent products in a company's inventory have been sold first and uses those costs. On the other hand In FIFO, the oldest products in a company's inventory have been sold first and goes by those production costs. A company using the FIFO method could be offloading more recently acquired inventory first, or vice-versa with LIFO.

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