Is anyone using FIFO, and if so, why?
If you've been using it long enough, has the pendulum swings in our economy supported that choice or did you get "stung" by using FIFO?
FIFO
Answers
We chose FIFO when we started our company (for a variety of reasons), and we've been mostly happy with the choice. Of course there are definitely pros and cons to the method but I wouldn't say we've been stung yet.
We are using FIFO except for
1
With that turnover rate, does it really make a difference what costing you use?
We use FIFO (and have for nearly 10 years) without any issues. Similar to the last poster, it helps that we turn inventory 18+ times a year.
Haven't used anything but FIFO for the past 15 years. Many raw materials (steel, imports) have been decreasing over the last decade, doesn't make sense to use LIFO unless you have a huge tax issue converting.
Had clients that still use FIFO as there's nothing 'wrong' with using it. Each method of inventory has its advantages and disadvantages.
Many of the clients were in manufacturing and don't keep inventory so they use up whatever is needed. Also, many of the other clients were in the food industry so, unless people want to be pay for and eat stale food, they use fresh food items to make their food products.
It really depends on the company.
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Accounting