FIFO LIFO COGS Inventory Look up a company and tell what t

FIFO - LIFO - COGS (Inventory)

Look up a company and tell what type of inventory system they use and why you think this is a correct or an incorrect choice. For example, A supermarket uses a LIFO for its produce. I do not think that is a good idea because the Last in are the first out so the older fruit will spoil.

Solution

You are thinking right but you are thinking about only one situation.

Answer can be both Correct or Incorrect depending upon current situation of the company.

I found some good explanation about why it is correct and why incorrect.

read the following links

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reason in supprot of FIFO

http://www.dummies.com/how-to/content/the-fifo-method-for-cost-of-goods-sold.html

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reason in supprot of LIFO

http://www.dummies.com/how-to/content/the-lifo-method-for-cost-of-goods-sold.html