advantages of lifo and fifo

advantages of lifo and fifo refers to the two main inventory accounting methods used to value stock: LIFO (Last In, First Out) and FIFO (First In, First Out). LIFO assumes that the last items purchased or produced are sold first, while FIFO assumes the first items bought or produced are sold first. For e-commerce businesses, choosing between LIFO and FIFO can impact profit margins, tax obligations, and inventory management. Understanding the advantages of both methods is essential for making informed financial decisions and optimizing inventory management strategies.