Fifo/Lifo

FIFO (First In, First Out) and LIFO (Last In, First Out) are inventory management strategies used to manage stock and determine the cost of goods sold. FIFO assumes that the oldest inventory items are sold or used first, while LIFO assumes that the most recently added items are sold or used first. These methods have implications for inventory valuation, cost management, and maintenance supply chain efficiency, particularly in managing spare parts and consumables.