What does FIFO refer to?
A) rotating stock so that the last one purchased is used first
B) rotating stock so that the first one purchased is used first
C) rotating stock so that the first one used is the most recently purchased
D) all of the above

Question

Quizplus · Accepted Answer

FIFO stands for "first in, first out," which means that the first item purchased or added to inventory is also the first one to be used or sold. This method ensures that stock does not become outdated or spoiled and is commonly used in industries such as food and beverage or healthcare. Option A and C contradict the basic principle of FIFO. Therefore, the best choice is B.

What Does FIFO Refer To