All the above are inventory management methods that are used to manage the flow of goods and materials in a business. Here is a brief overview of each method: 1. First In, First Out (FIFO): In a FIFO system, the oldest inventory is sold or used first, and the most recently acquired inventory is sold or used last. This results in the cost of goods sold (COGS) reflecting the older, lower-cost inventory, while the ending inventory consists of the more recently acquired, higher-cost inventory. Advantages of using FIFO: Increase accuracy. Tax advantage (in some countries). Better inventory management. Improve financial reporting. Reduce risk of obsolescence. Some industry examples for using FIFO: Retail industry, especially for products with stable prices such as clothing and home goods. Manufacturing industry, especially for products with consistent costs such as building materials and machinery parts.