Question

Which method do companies most often use to physically flow inventory items through a store?

a. Weighted Average
b. FIFO
c. LIFO

Answer 1

The most common method for physically flowing inventory items through a store is the FIFO method.

Step-by-step explanation:

The most commonly used method for physically flowing inventory items through a store is the FIFO (First In, First Out) method. This method means that the oldest inventory is sold or used first, ensuring that the inventory does not expire or become outdated before it is sold. It is commonly used in industries with perishable goods or products with expiration dates, such as food and beverages.