when do you use FIFO vs LIFO?

Accounting Information Systems
10th Edition
ISBN:9781337619202
Author:Hall, James A.
Publisher:Hall, James A.
Chapter16: Auditing It Controls Part Iii: Systems Development, Program Changes, And Application Auditing
Section: Chapter Questions
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when do you use FIFO vs LIFO?

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Step 1 Meaning of FIFO and LIFO

First-in-First out method - Under this method goods that are brought at earlier dates are sold first ( Older goods sold first)

Last-in-first out method - Under this method goods that are brought at most recent dates are sold first( Newer goods sold first).

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