FIFO Periodic is a method of inventory and cost accounting. It stands for “First In, First Out” and means that the items that were purchased or manufactured first are sold or used first. This approach allows for accurate and consistent tracking of inventory costs and ensures that those costs are factored into a company’s financial statements. FIFO Periodic also provides clear insight into production cycles, inventory capacity planning, purchasing decisions, and optimal storage conditions. By utilizing this method, businesses can optimize their operations to maximize productivity and profitability.