Question

The produce department in a grocery store must have the correct amount of fresh fruits and vegetables on hand to satisfy customer needs without overstocking produce that will become rotten. A grocery store most likely employs a(n) ______ inventory method.

Answer 1

The answer is FIFO (first-in, first-out)

Step-by-step explanation:

The FIFO (first-in, first-out) method of inventory costing assumes that the costs of the first goods purchased are those charged to cost of goods sold when the company actually sells goods.

In some companies, the first units in (bought) must be the first units out (sold) to avoid large losses from spoilage. Such items as fresh dairy products, fruits, and vegetables should be sold on a FIFO basis.