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Oct 18,  · This is one of the easiest methods that everyone can easily relate to. First In First Out is applicable in organizations that boast of inventory that converts quickly and has a fast. Its benefit is that the cost and revenue are shown from the related period and thus prove advantageous for the company. The most recent buy is shown as the last figure. Nov 20,  · First In, First Out (FIFO) is an accounting method in which assets purchased or acquired first are disposed of first. FIFO assumes that the remaining inventory consists of items purchased last. The first in first out method (“FIFO”) simply means that what comes in first will be handled first, what comes in next waits until the first one is finished. In other words, FIFO is a method of inventory valuation based on the assumption that goods are sold or used in the same chronological order in which they are bought. Read more