In businesses that handle a lot of perishable items (such as supermarkets) the actual movement of goods through inventory most closely resembles the LIFO inventory valuation technique.

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For a business that sells perishable items, the movement of goods will more closely resemble FIFO (first-in, first-out). When firms are concerned about perishable goods, they attempt to sell their older stock before selling newer items. Dated, perishable items will be placed on the sales floor in the order received.

In Businesses That Handle a Lot of Perishable Items (Such