FIFO Policy

FIFO (First-In-First-Out) & LIFO (Last-In-Last-Out) are methods used in managing inventory and financial matters involving the amount of money or raw materials of a company which has to have tied up within inventory of produced goods, raw materials, parts, components, or feed stocks. Used to manage the cost sheet related to inventory, stock repurchases and various other accounting purposes.

“FIFO” stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact oldest physical object has been tracked and sold. In other words, the cost associated with the inventory that was purchased first is the cost expensed first. With FIFO, the cost of inventory reported on the balance sheet represents the cost of the inventory most recently purchased.

“LIFO” stands for last-in, first-out, meaning that the most recently produced items are recorded as used first.

The above mentioned policy shall be complied in the whole factory especially central store, sub-store department. Violation of this policy is treading as an offence.

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