In accounting, there are inventory methods one must know any day.
It does not matter whether or not you are a CPA.
One of the accepted methods is commonly known as “FIFO”
Another inventory accounting procedure is called “LIFO”
Those are both acronyms in case you didn’t know.
Everything depends on the current economic situation.
Each method may render a different inventory valuation.
This is especially true in significant periods of inflation.
“FIFO” stands for “first in, first out”
“LIFO” means “last in, first out”
In the former, the earliest prices are used to determine inventory value.
With “LIFO”, the most recent costs are used in income review.
Become familiar with both procedures and others like this.
Get to know these two valuations if you are involved in business.
Categories:
lifo, business, people, work,
Form: Rhyme
Adam was an
acceptable accountant
And Eve a bubblingly
bright bookkeeper;
Adam loved the
First-In, First-Out
Accounting (FIFO) system,
While Eve preferred
The Last-In, First-Out
Inventory (LIFO) system;
Together they testified that
Inventoried sweet fruit
should neither
Sits and spoil
nor go to the
Garden wastebasket
Wrongfully.
Categories:
lifo, funny, history, imagination, nature,
Form: Burlesque