TeachMeFinance.com - explain FIFO
FIFO -- an acronym for first in, first out. It is a method of computing savings account earnings in which funds on deposit the longest period of time (first in) are considered to be those funds deducted from an account by any withdrawal (first out). This method results in the maximum interest penalty. In accounting, FIFO is a system of assessing the value of inventory, based on the cost for the first shipment of a particular item. See LIFO.
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