Fikfao: FIFO stands for First In

FIFO stands for First In, First Out, a valuation method for raw materials and inventory. In the FIFO method, the goods that are produced first are disposed of first. The FIFO method is approved by Accounting Standard 2 and also by the Income Tax Act of 1961. FIFO is an inventory management method that follows the principle of “first in, first out.” As mentioned, this means that the oldest products in a warehouse are the first to be sold or used. FIFO method explained with detailed illustrative exampleABC Co. Ltd sells leather jackets. Due to the seasonal nature of the business, ABC Co sells its merchandise as soon as possible to avoid the risk of downward fluctuation in prices towards the end of the winter season. Which of the following methods is most suitable for the valuation of ABC Co’s inventories? Representation of a FIFO queue In computing and in systems theory, first in, first out (the first in is the first out), acronymized as FIFO, is a method for organizing the manipulation of a data structure (often, specifically a data buffer) where the oldest (first) entry, or "head" of the queue, is processed first. Such processing is analogous to servicing people in a queue area on a first-come, first-served (FCFS) basis, i.e. in the same sequence in which they arrive at the queue's tail ...