Ending Inventory FIFO (First-In, First-Out) is an accounting method for managing inventory. It’s based on the idea that the oldest item in a company’s inventory should be sold first. This helps prevent older items from getting lost among newer ones and artificially inflating a business’s profits. By tracking and selling products based on age, businesses can ensure they accurately represent their ending inventory. Using Ending Inventory FIFO is an essential part of running a successful business as it keeps inventory levels accurate, helping to prevent losses due to expiry or spoilage.
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