How the GIGO and FIFO system control stock help with the overall profitability of an estabilishment?
How the GIGO and FIFO system control stock help with the overall profitability of an estabilishment?
like in hotel or restaurant
Thank you!
Tags: control, estabilishment, FIFO, GIGO, HELP, overall, profitability, stock, system
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1 Comment for How the GIGO and FIFO system control stock help with the overall profitability of an estabilishment?
1. Judy | February 15th, 2011 at 8:12 am
I hope you mean LIFO (last in, first out) and FIFO (first in, first out), not GIGO (garbage in, garbage out).
Assuming prices on the items have increased, using LIFO gives you a higher deduction, since you are deducting the most recent costs, not the oldest ones. So your profitability looks lower – what you want for tax purposes, but not if you’re trying to sell the business.
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