Fifo & Lifo

What does FIFO stand for?

• First In, First Out

• Final In, Final Out

• Fast In, Fast Out

• First Inventory, First Output

What does LIFO stand for?

• Last Inventory for Output

• Latest In, Fast Out

• Last In, First Out

• Long In, First Out

In FIFO, which inventory is sold first?

• The newest inventory

• The most expensive inventory

• The oldest inventory

• The remaining inventory

In LIFO, which inventory is sold first?

• The oldest inventory

• The latest inventory

• The cheapest inventory

• The unsold inventory

FIFO uses which cost to calculate cost of goods sold?

• Latest purchase cost

• Average cost

• Oldest purchase cost

• Market price

When prices increase, which method usually shows higher profit?

• LIFO

• FIFO

• Both are the same

• Neither FIFO nor LIFO

A company buys goods at Rp10,000 and later at Rp12,000.

If it uses LIFO, which cost is used first?

• Rp10,000

• Rp11,000

• Rp12,000

• Average cost

FIFO and LIFO are methods used to value…

• Fixed assets

• Cash

• Inventory

• Capital

Which method sells the oldest goods first?

• LIFO

• Average

• FIFO

• Periodic

Why are FIFO and LIFO important in accounting?

• They affect employee salary

• They affect cost of goods sold and profit

• They affect marketing strategy

• They affect company location