For this discussion, we will consider the materials and costs for the installation of a prefinished hardwood floor in the average 250 square foot living room. This pricing will assume that the owner will want to keep costs low and will NOT cover such costs as: Fees associated with the removal of older flooring.
FIFO â What is FIFO? Definition: FIFO is a method of stock valuation that stands for âFirst-In, First-Outâ. This assumes that the first (oldest) units of stock produced or received are also the first ones that are sold.
Advantages of FIFO. FIFO assumes the first inventory you bought is the first inventory you sell. As products or materials move through your company, the FIFO system tells you the actual cost. This is particularly useful for products that have shelf life such as groceries.