Perpetual inventory FIFO,

Definition of Perpetual inventory FIFO:

1. A manual or automated inventory accounting system where inventory is accounted for in first-in, first-out basis with adjustments, delivery, and movements received being updated as they occur. For example, a company that manufactures disk players will use this method to account for inventory because the products that were first produced will go out the door first. If there are any problems with delivery or customer satisfaction, the company can handle them as soon as the problem arises.