In other words, the seafood company would never leave their oldest inventory sitting idle since the food could spoil ... are more likely to use FIFO. For example, consider a grocery store selling ...

For example, if I bought cucumbers ... My fridge was pretty empty when I placed my latest food order, but having FIFO in mind kept me from just adding new items to my fridge bins and sections ...

Towfiqu Photography / Getty Images When it comes time for businesses to account for their inventory, businesses may use the following three primary accounting methodologies: FIFO stands for "first ...