New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    An inventory management method in which most recently

    produced items are recorded as sold first, is known as-
    A Last In First Out Correct Answer Incorrect Answer
    B Recent sales inventory Correct Answer Incorrect Answer
    C Inventory accounting technique Correct Answer Incorrect Answer
    D Sales Based Accounting Correct Answer Incorrect Answer
    E Production Based Accounting Correct Answer Incorrect Answer

    Solution

    FIFO and LIFO accounting are methods used in managing inventory and financial matters involving the amount of money a company has tied up within inventory. "FIFO" stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact oldest physical object has been tracked and sold. "LIFO" stands for last-in, first-out, meaning that the most recently produced items are recorded as sold first.

    Practice Next