MelonsO
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FIFO is the preferred inventory method of most retail establishments for the simple fact that the costs of an item increase the longer you have it in your possession. You are paying to store your product, and the taxes you pay on the merchandise is based on how long you have it in your possession. So in the instance of a refrigerator, lets say it costs the retailer $300 and that refrigerator has not sold in one year, it gets taxed on the retail value. So the cost is now increased for that refrigerator.
If that same appliance is still there next year, it is taxed again, increasing the cost even more.
Have an amazing day!
Micheal Savoie
http://squidoo.com/surveyalert
http://squidoo.com/myaffiliatecommunity
 Posted 538 days ago
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