FIFO

**FIFO** (First In, First Out) is a common inventory management and accounting method where the oldest items or costs are recorded as sold or used first. This approach helps businesses track inventory flow, cost of goods sold, and profitability more accurately, ensuring products are rotated efficiently to minimize spoilage or obsolescence. Ideal for businesses dealing with perishable goods or standardized products, FIFO is widely used in financial reporting and supply chain management.