advantages of fifo

advantages of fifo refers to the benefits of using the FIFO (First-In, First-Out) method in inventory management. FIFO ensures that the oldest stock is sold first, helping businesses reduce the risk of product expiration or obsolescence. This method is especially important for perishable goods, such as food and pharmaceuticals, where managing product shelf life is critical. FIFO also helps in maintaining accurate inventory records, ensuring that products are rotated efficiently and that newer stock remains in reserve, which can help avoid waste and improve overall profitability.