A FIFO calculator is a software used to calculate the price of items bought (COGS) utilizing the first-in, first-out (FIFO) stock costing technique. FIFO assumes that the primary objects bought are the primary objects bought and, due to this fact, the oldest stock prices are charged towards income first.
FIFO is without doubt one of the two essential stock costing strategies, the opposite being LIFO (last-in, first-out). FIFO is usually most popular as a result of it supplies a extra conservative estimate of COGS and ending stock, which may end up in decrease taxes. FIFO can be useful in managing stock ranges and stopping spoilage or obsolescence.
