ACCOUNTING I Dersi Merchandise Inventory soru detayı:
SORU:
What is"First-In, First-Out (FIFO) Method"?
CEVAP: The First-In, First-Out (FIFO) method assumes that the earliest goods purchased are the first to be sold. Under the first-in, first-out (FIFO) method, the cost of goods sold is based on the oldest purchases – that is, the first units to come in are assumed to be the first units to go out of the warehouse (sold).
The First-In, First-Out (FIFO) method assumes that the earliest goods purchased are the first to be sold. Under the first-in, first-out (FIFO) method, the cost of goods sold is based on the oldest purchases – that is, the first units to come in are assumed to be the first units to go out of the warehouse (sold).