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In storing which of the following inventory types are you most likely to see a FIFO (First In, First Out) system? Select TWO.
Suggested Answer: B, C
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Comprehensive and Detailed Explanation From Exact Extract:
FIFO ensures older stock is issued first, preventing spoilage or expiry. It's essential for perishable goods (food) and time-sensitive stock (cosmetics). For durable goods, FIFO is less critical.
(Reference: CIPS L5M10 Study Guide, Inventory management methods and systems, p. 13)
5 comments · newest first
KA
Kallie
4 days ago
Definitely B) Food products. They expire!
DE
Denny
9 days ago
I feel like B) Food products is definitely one, but I’m not confident about the second choice. Maybe D) Clothing items? They can go out of style, right?
GE
Genevieve
14 days ago
I’m a bit confused. I thought high-value items like A) cars or jewellery would use FIFO, but maybe they don’t expire like food does?
DO
Dorthy
19 days ago
I remember practicing a question like this, and I think B) Food products and possibly C) Cosmetic items make sense since they can expire too.
BO
Bok
24 days ago
I think FIFO is mostly used for perishable items, so I'm leaning towards B) Food products for sure. Not sure about the second one though.