What does FIFO stand for and why is it important in inventory control?

What does FIFO stand for and why is it important in inventory control?

• A. First-In-First-Out; ensures older stock is used before newer stock to reduce spoilage
• B. Last-In-First-Out; ensures newer stock is used first
• C. First-In-Last-Out; sorts by supplier preference
• D. First-Out-First-In; rotates stock by price

Answer: (A)