how to use fifo method

how to use fifo method refers to the First In, First Out (FIFO) method used in inventory management. FIFO assumes that the first items purchased or produced are the first to be sold or used. This method is commonly applied in businesses that deal with perishable goods, such as food or pharmaceuticals, to ensure that older inventory is used before newer stock. FIFO helps businesses manage inventory flow, reduce waste, and improve cost control.