Question

Which type of selling method sells the oldest inventory first?
A.First In First Out (FIFO)
B.Last In First Out (LIFO)
C.Just In Time (JIT)
D.Economic order quantity

Answer 1

Answer:

A.First In First Out (FIFO

Explanation:

FIFO, which is first in, first out, is an inventory management technique that seeks to sell the inventory that came to the stores first. In other words, the old inventory is sold first.

As the name suggests, businesses that practice FIFO clear the initial inventory before embarking on new stocks.