Question

Which method describes the inventory process in which the first items to be

Answer 1

FIFO

A P E X..................20

Answer 2

Answer:

Last in, Fast out (LIFO)

Explanation:

The Last in, Fast out (LIFO) method is an accounting method used to attach value to inventory.  Under the LIFO formula, the assumption is that the last item to be purchased will be sold first. The costs of the final goods to be produced or purchased will be used to expense the first batch of products to be sold.

LIFO is the contrast of FIFO, which stands for first in first out.  LIFO, as an inventory accounting technique, is rarely used outside the US. The approach is suitable for large businesses with huge inventories such as car dealers and retailers.