In inventory management, which method uses oldest stock first to reduce expiration risk?

• A. LIFO
• B. FIFO
• C. Random sample verification
• D. Perpetual inventory records

Answer: (B)

Using the oldest stock first minimizes expiration risk by ensuring items with the earliest shelf life are used before they expire. This approach, FIFO, moves stock in the order it was received, so older items are pulled for sale or production before newer ones. That reduces waste, prevents costly markdowns, and keeps inventory from sitting past its expiration. LIFO would pull the newest stock first, increasing the chance that older items linger and expire. Random sample verification is a quality-control check on inventory accuracy, not a method for the usage sequence. Perpetual inventory records track stock levels in real time but don’t dictate the order in which items are consumed.