Advantages of First In First Out Method (FIFO)

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Offline MD. ABDUR ROUF

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Advantages of First In First Out Method (FIFO)
« on: March 07, 2017, 01:28:10 PM »
The following are the advantages of this method:
(i) This method is easy to operate, provided the prices of materials do not fluctuate frequently.
(ii) It gives such a value of closing stock which is vary near to current market prices since closing inventory is made of
most recently purchased goods.
(iii) It is a realistic method because it takes into account the normal procedure of issuing goods/inventory, i.e. the
materials are issued to production in the order of their receipts.
(iv) As it is based on historical cost, no unrealized profit enters into the financial statements for the period.
Dr. Md. Abdur Rouf
Associate Professor of Accounting
Faculty of Business and Economics
Daffodil International University

Offline shahanasumi35

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Re: Advantages of First In First Out Method (FIFO)
« Reply #1 on: March 13, 2017, 05:32:36 PM »
Thanks for Sharing.

Offline shafayet

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Re: Advantages of First In First Out Method (FIFO)
« Reply #2 on: March 13, 2017, 06:38:38 PM »
Thanks for the post :)