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.
The FIFO flow concept is a logical one for a business to follow, since selling off the oldest goods first reduces the risk of obsolescence. Under the FIFO method, the earliest goods purchased are the first ones removed from the inventory account.