The FIFO method assumes that the oldest inventory units are sold first, while the LIFO method assumes that the most recent inventory units are sold first. LIFO better matches current costs with revenue and provides a hedge against inflation. The FIFO vs. LIFO accounting decision matters because of the fact

Assets, like equipment and vehicles, slowly depreciate over time, allowing your business to slowly write off the cost of the asset and receive a tax deduction for it each year. Allocation is the process of distributing or allocating funds, resources, or costs to a particular account or https://x.com/BooksTimeInc particular purpose.