FIFO Calculation in Excel
The FIFO principle is an important principle in logistics, finance, and accounting. It stands for 'first in, first out', meaning that assets purchased first should also be sold first. It is applied to ensure older goods are used or sold first, reducing the risk of selling expired or obsolete items. In economic contexts, it is commonly used for assets like stocks, bonds, or currencies. Excel can be used to create a dynamic FIFO model for calculating costs, profits, and inventory values.