A FIFO calculator is a software used to calculate the price of items bought (COGS) utilizing the first-in, first-out (FIFO) stock costing methodology. FIFO assumes that the primary gadgets bought are the primary gadgets bought and, due to this fact, the oldest stock prices are charged in opposition to income first.
FIFO is likely one of the two principal stock costing strategies, the opposite being LIFO (last-in, first-out). FIFO is commonly most well-liked as a result of it supplies a extra conservative estimate of COGS and ending stock, which can lead to decrease taxes. FIFO may also be useful in managing stock ranges and stopping spoilage or obsolescence.
