FIFO stock = LIFO inventory + LIFO reserve
FIFO (first in, first out) stock management seeks to cost inventory so the business is less likely to lose money when products expire or become obsolete.
LIFO (last in, first out) inventory management is better for nonperishable goods and uses current expenses to calculate the price of items sold.
FIFO is extra in all likelihood to give accurate results. This is due to the fact calculating earnings from inventory is extra straightforward, meaning your monetary statements are easy to update, as well as saving both time and money. It also capability that historical inventory does now not get re-counted or left for so long it turns into unusable.
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