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FIFI versus LIFO Comparisons

FIFI versus LIFO Comparisons

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Basis of comparison FIFO LIFO
Meaning FIFO means First In First Out where the stock recurved will be issued first. LIFO means Last In First Out where the stock last recurved will be issued first.
Inventory Here, inventory means the latest stock recieved. Inventory means the oldest stock recieved
Current market price cost of unsold stock will be the current market price of inventory in hand. Cost of goods sold will be the current market price of inventory in hand.
Inflation Income tax will be high when there is inflation in economy. Income tax will less when there is inflation in economy.
Deflation Income tax will be less when there is deflation in economy. Income tax will be high when there is deflation in economy.
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