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Former Member

LIFO & FIFO Example

Hai,

Can some one give me a realtime example or scenario of LIFO & FIFO valuation?

Thanks in advance,

J. Sriram.

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2 Answers

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    Former Member
    Feb 22, 2009 at 06:37 AM

    FIFO - first in first out - it might be applicable in an industry where shelf life is an important criteria say perishable items like bread; milk ; medicine etc. so a material which comes in first at warehouse should exit first also.

    LIFO - last in first out can be used in say cement industry wherein u vertically stack material in warehouse one over other , obviously the later the material is recieved is placed at the top. so it is dificult to pick the sack which is at the lowest level of a vertical column, thats why a LIFO is applied.

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    Former Member
    Feb 22, 2009 at 06:45 AM

    Thank u very much, have to take a seminar tats y asked for a real time example. Thank you.

    Edited by: sri ram on Feb 22, 2009 7:45 AM

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