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→FIFO: From FIFO (accounting) page which is now a redirect.
==FIFO==
==FIFO==
Under FIFO, items are removed from inventory based on the oldest purchase cost shown in the accounting records. This method generally tracks how inventory is actually sold or removed, especially for items with short shelf lives (such as produce).
Under FIFO, items are removed from inventory based on the oldest purchase cost shown in the accounting records. This method generally tracks how inventory is actually sold or removed, especially for items with short shelf lives (such as produce). This method is generally preferred when the cost of that product is declining, since because it removes the most expensive (earliest) entries first, it thus reduces the overall book value of product the most.
===Example===
===Example===