FIFO stands for?

FIFO stands for "First in, first out," which is a method primarily used for inventory management and accounting. This principle suggests that the first items added to inventory are the first to be sold or used. This is particularly important in food service and retail environments, where perishable goods can lose their quality over time.

By adhering to the FIFO method, you minimize waste and ensure that older products are used or sold before they spoil or become outdated. This practice not only helps maintain product freshness but also supports effective stock rotation, thereby positively impacting customer satisfaction and reducing losses associated with expired inventory.

The other options do not accurately represent this inventory control method or its core principle, thus invalidating them as correct answers.