Carpon
Valued Contributor
FIFO is an abbreviation that stands for First In First Out and LIFO stands for Last In First Out. They are Business terms and they mean the kind of stock you make available: whether you sell the ones recently purchased or sell out goods that have been there before selling those recently purchased.
Each may have it's advantages over the other and disadvantages likewise. But there are specific times and kinds of goods and Business that should operate on a particular basis.
Personally, I prefer LIFO because, it is actually not good to allow items stay in your store for a very long time. If they are perishable products and ones that have a period of expiry, then you may end up having damages because they will end up perishing in storage. So it's better you dispose products that have been there to avoid wasting them.
But in some business like clothes and shoes selling, there are trends and if you make only old items available, you may not have much patronage.
What is your take on this matter?
Each may have it's advantages over the other and disadvantages likewise. But there are specific times and kinds of goods and Business that should operate on a particular basis.
Personally, I prefer LIFO because, it is actually not good to allow items stay in your store for a very long time. If they are perishable products and ones that have a period of expiry, then you may end up having damages because they will end up perishing in storage. So it's better you dispose products that have been there to avoid wasting them.
But in some business like clothes and shoes selling, there are trends and if you make only old items available, you may not have much patronage.
What is your take on this matter?
